Article Summary In an Attempt to Discourage Smoking, New York City Mayor

question 266

Multiple Choice

Article Summary
In an attempt to discourage smoking, New York City Mayor Michael Bloomberg proposed a bill which would set a $10.50 minimum price for a pack of cigarettes. The bill would also prohibit retailers from offering any discounts such as 2-for-1 offers or accepting discount coupons. New York City already has the highest cigarette tax in the country, at $5.85 per pack, and the state of New York is one of many which already require cigarettes be marked up by a specified percentage. This bill is a companion to one which would require stores to keep tobacco products hidden from sight. Although the bills are expected to be challenged in court, a precedent has been set in Rhode Island, where a court upheld a ruling allowing the city of Providence to forbid retailers from accepting coupons and offering discounts on cigarettes.
Source: Vivian Yee, "Bloomberg Seeks End to Cheap Cigarettes," New York Times, March 26, 2013.
-Refer to the Article Summary. The minimum price of $10.50 per pack of cigarettes being proposed by Mayor Bloomberg is an example of

• A) a price ceiling.
• B) a price floor.
• C) an economically efficient price.
• D) a black market price.

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Definitions:

Productivity Decline

A decrease in the efficiency with which inputs are converted into outputs, often measured in terms of units produced per labor hour.

Productivity Factors

Refer to the various elements that can influence the efficiency and output of production in an economy, including technology, labor skills, capital goods, and innovation.

Specialized Skill

A high level of proficiency in a specific type of work or activity, which typically requires significant training and experience to develop.

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, or other non-job-related factors.