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ECO100 Economics For Business

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Question:

  1. Compare and contrast the rate of cigarette smoking in Australia with your home country and the world average rate.draw and label fully a supply and demand curve diagram to explain how an excise tax on cigarettes affects:

demand for cigarettes when demand is inelastic compared with elastic; tax revenue for the government,

  1. Explain the idea of cost versus benefit when making decisions. Use this idea to analyse as to why: the overnment wishes to reduce the rate of smoking; and  a smoker as they age should quit smoking.

You will need to support your answer with information through research. Hints: you must acknowledge the source materials appropriately, i.e., referencing.

  1. Describe and evaluate the various policies over the years (other than a tax on smoking) that the Australian and State governments have enacted in order to reduce smoking.
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