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WARNING LABELS SCENARIO
Cigarette packages and advertisements have included warning labels for several years, but the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act) signed into law in 2009 required that stronger and more graphic health warnings appear on cigarette packages by 2012. In 2011, the Food and Drug Administration proposed nine new textual warning statements that were much stronger than previous warning statements. The new warning statements included statements such as "Cigarettes are addictive," "Cigarettes cause cancer," and "Tobacco smoke may harm your children." These statements were to be accompanied by color graphics depicting the negative health effects of smoking. Some of the proposed graphics included a picture of diseased lungs, a man smoking with smoke coming out of a hole in his throat, rotted teeth and mouth cancer, a mother blowing smoke in her baby's face, and dead and dying people. The Tobacco Control Act dictated the placement of these statements and graphics on packages and advertisements, taking up at least 50 percent of the front of the package and at least 20 percent of the advertisement. Research reveals that the best way to quit is the reduce the intake of tobacco in small increments over time rather than an attempt to quit it altogether.
-Refer to Warning Labels Scenario.The objective of introducing warning labels on cigarette packs is to reduce smoking among consumers,based on the belief that if consumers read these statements and look at the graphic depictions,the desired outcome will be achieved.This change in behavior resulting from the interaction between the consumer and the warning labels is referred to as _____.
Nonrivalry
A characteristic of a good or service whereby its consumption by one individual does not reduce its availability for consumption by others.
Nonexcludability
The inability to keep nonpayers (free riders) from obtaining benefits from a certain good; a characteristic of a public good.
Public Goods
Goods that are non-excludable and non-rivalrous, meaning they are available to all members of society and one person's consumption does not reduce availability for others.
Public Good
A good or service offered to every member of a society for free, supplied by either government entities or private individuals or groups, without seeking financial gain.
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