Monetary Policy

Assignment One Jamile Brown Dr. Lloyd Amaghionyeodiwe Principles of Economics Strayer University stick 2012 Suggest how an economic expert would ascend the occupation of intoxicantic beverage ab wont. Provide two (2) possible solutions to this problem. entangle the quaternity (4) elements of the economic way of thinking in your analysis. An economist would recitation the four elements of the economic way of thinking work on assumptions, Ceteris Parabis, thinking at the margin, and incentives to find solutions to the problem of alcohol ab work. Economists use assumptions about a problem to make it more under(a)standable and to isolate the most important shiftings associated with the problem. Ceteris parabis is a Latin term meaning, all things being equal. An economist uses this to rule out some(prenominal) another(prenominal) variables that may be affecting the variable chthonic study. opinion at the margin means that the researcher would regulate if the benefits of the accomplish would outweigh the marginal be. Incentives increase or diminish the likelihood of an entities response to an action. According to the Centers for Disease Control in 2011, extravagant alcohol consumption costs $223.5 billion all(prenominal) year, mostly callable to lost workplace productivity and change magnitude health c atomic number 18 costs (Kliff, 2012).

Two possible solutions to the problem of alcohol abuse are to set increased costs for the value of alcohol and the other is to prevent or inflict the trade of alcohol to minors. The higher price for alcohol would function as an incentive to individuals to buy less a! lcohol. Stiffer penalties and fines for those caught selling alcohol to or for minors would also act as an incentive. In the branch solution, the assumption is that the price of alcohol is the main variable under consideration and that all other variables, for example, economic emplacement of the purchasers are equal. In the second option, the age of alcohol consumer is the particular concern. rock-bottom alcohol consumption, less health concerns due to excessive alcohol...If you motive to get a full essay, order it on our website: OrderCustomPaper.com

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