Assignment 1: Principles of Economics

Suggest how an economist would approach the problem of alcohol abuse. Provide two (2) possible solutions to this problem. Include the four (4) elements of the economic way of thinking in your analysis. The Center for Disease Control came up with an astonishing record of how much binge drinking cost the United States each year. On average, excessive alcohol consumption costs $223.5 billion each year, mostly due to lost workplace productivity and increased health care costs. (Kliff, 2012) To take a look at it from an economist perspective we can speculate that two possible solutions to decrease alcohol abuse would be determined by cost and benefit. By increasing cost, economist are increases higher taxes on alcohol, prohibiting the consumption of alcohol in public places, and also having a stricter law on alcohol purchases. Around the world, traditionally and at this time, public concern about the penalties of excess alcohol intake for individual well-being and community well-being has been merged in social means, which are often reinforced by private rules and government regulation. Every state now has a wide selection of alcohol-control measures in place, including a minimum age of purchase (twenty-one), excise taxes, a licensing business for retail outlets, and consequences for driving under the influence. (Moore, 2012) By using assumptions to simplify this matter economist could having have stricter laws when purchasing alcohol out in public but, people could still drink before they get there. It is hard to control the intake of alcohol people consume because it can come from different places.
Analyze how prescription drugs affect the demand and supply of other products and services in this country In today's society, a high percentage of the population requires prescription drugs to treat injury or illness. In some cases, the need for drugs may be short term because of an injury of some sort and in other cases; the drugs may be required for the remainder