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Economics IA article 2 - Coggle Diagram
Economics IA article 2
Link
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https://www.livemint.com/news/world/new-zealand-plans-to-impose-a-lifetime-ban-on-cigarettes-for-future-generation-11639029789250.html
Key terms and economic theories
Bans
Government intervention
Demerit goods
Market failure
Negative externalities
Diagrams to be added
Inelastic goods
Negative externalities
Key concept
- Well-being
Underlying problem
- Smoke ban on cigarettes in New Zealand
Proposed policy and its intended effect
Proposed solution- Smoking ban
Reduce consumption of demerit goods
reduce negative externality, and thus market failure
Reduces healthcare costs
Unintended effects of proposed policy
Reduces private benefit of consumers
Reduces profit for businesses
Introduces underground markets
Reduces revenue that government gains from taxes