Title: Principles of Economics
Suggest how an economist would approach the problem of alcohol abuse. Provide 2 possible solutions to this problem. Include the 4 elements of the economic way of thinking in your analysis: 1. Use Assumptions to Simplify, 2. Isolate Variables, (ceteis paribus), 3. Think at the Margin and 4. Rational People Respond to Incentives.
Analyze hgow prescription drugs affect the demand and supply of other products and services in this country (US).
Formulate a reason why the elasticity of supply is an important consideration when analyzing the impact of a shift in demand. Include at least 1 example in EACH scenario.
Provide 2 examples of increasing-cost industries in Ohio and propose why they would have a postively sloped supply curve. (healthcare is an increasing cost in Ohio, use Ohio State University Hospital).
Suggest how under certain condtions a perfectly competitive market is economically efficent.
Use at least 3 peer reviewed references from US, Canada or England.
Use APA format, Times New Roman font, double spaced with Title Page, Introduction, body, Conclusions and Reference page.
Due: February 18, 2013