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Nicotine has been used as a psychoactive drug by the native peoples of the Americas for approximately 8,000 years. Five hundred years ago, Christopher Columbus introduced tobacco to Europeans, who discovered, once they overcame the nausea and dizziness produced by snorting, chewing, and smoking it, they simply could not get along without it. Nicotine rapidly joined alcohol and caffeine as one of the world’s most popular psychoactive drugs. In the century after Columbus returned from the Americas with tobacco, consumption and addiction to nicotine spread rapidly around the world. There followed numerous attempts by governments to quash what had come to be called the “evil weed.” None were successful, even in Russia where a smoker could be executed for using it. A few years ago, the head of the Food and Drug Administration announced that his agency had concluded that nicotine is addictive and should be classified with marijuana, heroin, and cocaine.
(B) What can we predict if tobacco is ever completely prohibited?
In the model that we have studied, consumption is a function of disposable income or income minus taxes C(Y −T), which implies that taxes T are a lump-sum subtraction from income Y. Derive the expression for the government purchases multiplier dY dG ..
In the simple Keynesian model, if output exceeds aggregate expenditures, According to the Keynesian analysis, as income increases, the marginal propensity to consume will rise. In the classical model, a self-regulating market would. According to the ..
Demand in a perfectly competitive market is Q = 100 - P . Supply in that market is Q = P - 10.
Using the principles of supply and demand, develop a plan to alleviate the shortage of math and science teachers within this country. Try to use price and non-price determinants as your tools to reach equilibrium. Defend your position using economic ..
With the economy in a recession because of inadequate aggregate demand, the government increases its purchases by $1,200. Suppose the central bank adjusts the money supply to hold the interest rate constant, investment spending is fixed, and the marg..
Find out the Nash equilibrium prices of the procedures at the hospitals. find out the profit maximizing monopoly prices of the procedure at each hospital.
Yasmine’s income this period is $500 and she is certain that her income next period is $300. The current market interest rate is 10 percent. She plans to spend exactly her current income this period and her future income next period, with no borrowin..
What could be the full increase in real GDP from the change in government spending assuming that the aggregate supply curve is horizontal across the range of GDP being considered.
The dairy industry is initially perfectly competitive. There are thousands of small dairy farms across the country. Then Bill Gates goes and purchases every single dairy farm. In your own words compare the outcome in the market under monopoly and und..
What ways can you think of,grounded in the political economy of trade policy, by which preferences could pave the way toward world trade liberalization? How could they retard it?
Choco deliete is a manufacturer of fine chocolates. Its monthly rental expense is $1,000,000. It also has $2 million in fixed labor costs. its marginal costs are $.70 per chocolate bar. If sales fall by 30 percent from 2 million chocolate bars per mo..
If the initial investment in a project will cost $50,000 with expected benefits of $15,000 a year for 8 years, using 15% MARR per year. The net present worth for the project will be?
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