some products like alcohol and tobacco are heavily taxed by the government. explain two reasons why...

some products like alcohol and tobacco are heavily taxed by the government. explain two reasons why the government chooses to interfere in these specific markets?

Expert Solution

Ans:- The government imposed heavily taxes in all alcoholic and tobacco products for the purpose of healthcare and collecting government funds. One of the idea behind the alcoholic and tobacco taxes is that to decrease in the demand of these specific products (mainly youth). The main reasons behind the government's interference in the alcohol and tobacco market are.

1. One of the common method used by the government is imposing exercise duty on the sale of these specific products . The alcohol and tobacco tax is best cost effective process for attaining it's objective of decreases in injurious alcoholic consumption.

2. Protecting the people from increasing the danger of violence , communal disorder , prevent from accident (drink driving) , health protection etc .

3. To increase income for the government- Alcoholic and tobacco taxes increase income for the government. The government use this taxes for the infrastructure development.

Rahul Sunny answered 1 year ago

Should government impose tax on vice activities (tobacco,alcohol)? Discuss.

The probability the adult used tobacco products is 0.300. The probability the adult binge drank alcohol...

The probability the adult used tobacco products is 0.300. The probability the adult binge drank alcohol is 0.384. The probability the adult drank any alcohol is 0.571. The probability the adult used tobacco products and did not drink any alcohol is 0.174. a) Given that the adult drank alcohol, what is the probability the adult binge drank alcohol? b) What is the probability the adult used tobacco products and drank any alcohol? c) What is the probability the adult did...

Government tries to discourage tobacco usage. In order to do that, they would like to set...

Government tries to discourage tobacco usage. In order to do that, they would like to set a higher price for tobacco. Currently, tobacco is priced $10 in the markets. Market research uncovered that the current price elasticity of tobacco is 0.3. a. Given this information, what should be the new price set by the government so that tobacco consumption would fall by %25? b. Do you think this policy will be more effective in the long-run? Support your answer with...

should tobacco products be outlawed altogether? why or why not? Is vaping a healthier alternative to...

should tobacco products be outlawed altogether? why or why not? Is vaping a healthier alternative to smoking tobacco products? What are health benefits to smoking cessation? Are there enough accessible resources to help with smoking cessation?

1. Are taxes on tobacco, gasoline, and alcohol, Progressive, Proportional, or Regressive? Why do you think...

1. Are taxes on tobacco, gasoline, and alcohol, Progressive, Proportional, or Regressive? Why do you think they are? 2. Why should the federal government not be required to balance its budget while state and local governments are?

1. Explain two economic reasons for government taxation for poverty alleviation

Explain two reasons why private label products can be both lower priced than national brands in...

Explain two reasons why private label products can be both lower priced than national brands in retailer stores but also more profitable for retailers to sell.

What is equity financing? What are some of the reasons new businesses may rely more heavily...

What is equity financing? What are some of the reasons new businesses may rely more heavily on equity financing in times of economic downturn? What are some potential drawbacks to relying too heavily on equity financing? Research at least one case, statute or legal news article on the issue of equity financing. Be sure to comment on your classmates’ postings.

Outside of health reasons and government mandates, why are some businesses shutting down temporarily during this...

Outside of health reasons and government mandates, why are some businesses shutting down temporarily during this pandemic? (Please use economic concepts covered in this course.)

Question: Why health and health care economics? A. List and explain the five reasons why some...

Question: Why health and health care economics? A. List and explain the five reasons why some economists may be concerned with health and health care that were discussed in class. B. Provide a practical example of one of the reasons you list in Question 3, Part A. C. Evaluate each of the five reasons you provided in Question 3, Part A in terms of whether you believe that these are areas that should be of focus to society.

Question