In Part as an Effort to Discourage Smoking, Australia Has

question 46

Essay

In part as an effort to discourage smoking, Australia has some of the highest levels of cigarette taxation in the world. Do you think a tax on cigarettes dramatically decreases the number of people smoking? Is taxing cigarettes an effective way to raise revenue for the government from smokers?

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Definitions:

Common Stock

A type of security that signifies ownership within a corporation, known as corporate equity ownership.

Cumulative Feature

A characteristic of preferred stock that entitles shareholders to receive dividends that were omitted in the past before any dividends can be issued to common stockholders.

Preemptive Right

A shareholder's right to maintain their proportionate ownership by buying additional shares before they are offered to the public.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily match the market value.