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Which would have been more effective at reducing youth alcohol abuse, increasing the legal age for alcohol consumption to 21, or keeping the federal taxes on alcohol constant in real 1951 purchasing power

Homework – Each session’s homework assignments have a value of 30 points. Questions assessed will be randomly selected by the facilitator and points awarded according to the number of chapter concepts correctly applied to the assigned questions. Course homework must be entered by midnight on Sunday. Unless there are special circumstances discussed and approved ahead of time with your facilitator, grades will be deducted 10% each day for up to five days. After five days the work will not receive any credit.

Submit Microsoft Word and Excel documents as attachments in the “Coursework” link. This way, no one will have to worry about being timed-out. Attachments using Microsoft Word must have the .doc or .docx extension. Save the files with your first initial, last name and session number, (for example, rboor3.doc or rboor3.docx). Attachments using Microsoft Excel must have the .xls or .xlsx extension. Save the file with your first initial, last name and session number, (for example, rboor3.xls or rboor3.xlsx.). Be sure to create backup files for all work you submit for assessment. This will help protect your work from computer glitches.

Chapter 4 – Answer the following “Review Questions and Problems” on pages 119-121.
· 4.1, 4.5, 4.23
· Questions and problems marked with an asterisk have solutions given in Answers to Selected Problems at the back of the text
Applications
4.1
· a. Which would have been more effective at reducing youth alcohol abuse, increasing the legal age for alcohol consumption to 21, or keeping the federal taxes on alcohol constant in real 1951 purchasing power? Explain.
· b. What has happened to the amount of campus violence since 1991 as a result of the decline in the real price of beer? Explain.
4.2
· Explain the flight toward poultry and away from red meat by U.S. consumers.
4.6
· Why do economists claim that positive network effects can be a two-edged sword for suppliers?


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