Principles of Economics Essay

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Running head: PRINCIPLES OF ECONOMICS Principles of Economics Research Paper Corinthia Tucker Dr. Sarah E. Uhimchuk ECO100- Principles of Economics, Strayer University November 2, 2012 1 Running head: PRINCIPLES OF ECONOMICS 2 Abstract Economics is the study of how choices are made when there is insufficient supply. The purpose of this paper is to research and discuss five principle of economics topics. This research paper will address the following topics: i. 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. ii. Analyze how prescription drugs affect the demand and supply of other products and services in this country. iii. Formulate a reason why the elasticity of demand is an important consideration when analyzing the impact of a shift in supply and why the elasticity of supply is an important consideration when analyzing the impact of a shift in demand. Include at least one (1) example in each scenario. iv. Provide two (2) examples of increasing-cost industries in your state and propose why they would have a positively sloped supply curve. v. Suggest how, under certain conditions, a perfectly competitive market is economically efficient. Running head: PRINCIPLES OF ECONOMICS 3 Principles of Economics The Centers for Disease Control (CDC) conducted a study to see how much excessive indulgence of alcohol is consumed in the United States. The study reported that excessive indulgence cost the United States an overwhelming $223.5 billion dollars. This cost is extremely high. An economist would approach the problem of alcohol abuse by advising businesses to increase the cost of alcohol through added tax and reduce availability of alcohol (Klein et al, 2012). The CDC

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