close

Task 1: Guidelines of Economics

 Assignment you: Principles of Economics Essay

Assignment you: Principles of Economics

Cletajo Hollingsworth

ENVIRONMENT 100

30 January 2012

Suggest just how an economist would procedure the problem of alcohol abuse.

Economics is about scarcity and choice. It is assumed that most human beings happen to be rational thinkers hence would always want to consume goods that would give them maximum fulfillment or energy. Mankiw (2011, p. 6) argues that rational people ‘systematically and purposefully do the best to obtain objectives provided available option. ' Given a choice between alternatives and with scarce resources, one would evaluate the rewards and costs of eating an extra product of a product and would only take a conclusion only if marginal benefit is greater than limited cost. In this instance, to solve the alcohol abuse issue, one has to consider marginal benefits and marginal costs derived from consuming an extra product of alcoholic beverages and since increased drinking recieve more costs than benefits, you might refrain from alcoholic beverages. The opportunity price foregone employing to misuse alcohol is too high in comparison to satisfaction produced; money spent upon alcohol may do various other things such as feeding the family, education for children, and purchases among others. Besides, the person might have health issues thus increasing the costs. By considering all of these factors, a rational person would refrain from alcohol abuse.

Heyne (2000) appreciates the role played simply by incentives in directing habit. For him, rational people usually interact to incentives and/or induced to act by them. Assuming alcoholic beverages abusers happen to be rational, impacting taxes upon alcohol substances would get rid of the problem. This could follow the law of require which says that other things being constant, if the cost of a great increase, the amount demanded from the good lessens. Taxes have effect of raising alcohol prices and this could automatically show that the abusers would abstain from drinking or lower their consumption.

Analyze how...

 Essay how Has Pressure Group Activity Changed In recent times In The UK

Essay how Has Pressure Group Activity Changed In recent times In The UK

п»їHow has pressure group activity changed in recent times in the UK? A Pressure Group is a group who strive to change govt policy on issues associated with…...

Read
 Richman Expense Project Component 1 Composition

Richman Expense Project Component 1 Composition

The user domain name contains the staff that will be interacting with resources inside the network. Users access systems, applications, and data inside the rights and privileges defined…...

Read