Recall the Application About Taxing Cigarettes to Offset Present Bias

question 78

Multiple Choice

Recall the application about taxing cigarettes to offset present bias.Accordingly to the study,how would the cigarette tax effect low-income households?

• A)It will be beneficial as low-income households will respond to changes in the higher price of cigarettes.
• B)Low-income households would experience a relatively large increase in lifespan.
• C)Low-income households will not benefit from the cigarette tax.
• D)A and B are correct.

---

Definitions:

Process Activities

The series of actions or steps taken in order to achieve a particular end in a process.

Resources

Assets, materials, or other items of value that can be used to produce goods and services or to achieve objectives.

Porter's Strategy

Refers to competitive strategies introduced by Michael Porter, including cost leadership, differentiation, and focus strategies aimed at gaining competitive advantage.

Competitive Advantage

An advantage over competitors in some measure such as cost, quality, or speed; leads to control of a market and to larger-than-average profits.