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Ket [755]
3 years ago
14

50 POINTS PLEASE HELP

History
1 answer:
NNADVOKAT [17]3 years ago
5 0

One type of regulation that affects the economic choices of consumers are the <u>excise taxes: </u>

  1. Excise taxes impose resctrictions on the consumption of certain goods, by making them more expensive and therefore more unattractive to consumers than before. Typical examples of goods taxed are cigarettes or alcohol.
  2. Let's take the example of cigarettes as the product on which the tax is imposed, which elevates is price. Consumers of this good would react as the low of demand predicts, by decreasing the amount demanded and consumed.
  3. As a loyal consumer of a taxed good you would prefer that the tax did not exist. But  cigarettes are a danger for human health, and these regulations, apart from raising funds for the government, are also aimed at preventing addictive behaviours and reducing the consumption of such drugs. Therefore, from my viewpoint, I would maintain this regulation.
  4. Another regulation imposed to citizens are taxes on imports, specially nowadays with the increase of the protectionist policies. This economic decision which is said to favour national producers, is actually isolating them from the rest of the world and condemning them to become less competitive and obsolote. If they do not work towards innovation for competition, the products manufactures would be more expensive and less quality that the ones that could be purchased from abroad. In the end, such measures should be abolished because they are harmful for both producers and consumers.
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