Monetary Policy

Assignment One Jamile Brown Dr. Lloyd Amaghionyeodiwe Principles of Economics Strayer University glow 2012 Suggest how an economic expert would ascend the occupation of alcohol ab wont. Provide two (2) possible solutions to this problem. entangle the intravenous feeding (4) elements of the economic way of thinking in your analysis. An economist would wont 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 usance. Economists use assumptions about a problem to make it more graspable and to isolate the most important shiftings associated with the problem. Ceteris parabis is a Latin bourn meaning, all things being equal. An economist uses this to rule out some(prenominal) separate variables that may be affecting the variable chthonic study. thought process at the margin means that the researcher would regulate if the benefits of t he execute 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, exuberant alcohol consumption costs $223.5 billion all(prenominal) year, mostly ascribable to lost workplace productivity and change magnitude wellness c are 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 exchange of alcohol to minors. The higher price for alcohol would function as an incentive to indi viduals to buy less alcohol. Stiffer penalti! es and fines for those caught selling alcohol to or for minors would also act as an incentive. In the early solution, the assumption is that the price of alcohol is the main variable on a lower floor 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. reduced alcohol consumption, less health concerns due to excessive alcohol...If you require to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay