Contemporary Economic Policy and the Virtual Chancellor Simulation

ECON 2301 Principles of Macroeconomics Time: Th 7:05 pm – 9:45 pm Synonym: 40512 Section: 023 Room: NRG2 2120

This is because, the exports and imports had risen drastically which benefitted the economy. The government could use this to their advantage and implement what had caused the stunted GDP growth, in scenarios where the economy may be lacking or unstable.

Constructit is a company which does not presently have any employees with health insurance benefits. The company employs 1000 people and are willing to fund annual premiums as long as they can pay $4,000 per person. The employees comprise of 550 men and 450 women, ranging in ages 26 to 45. Furthermore, the workers 57% of the workers range from high activity to moderate activity while the 43% that remain are in predominantly sedentary positions. The employer must calculate what kind of risks the employee will face when considering what type of insurance to offer the employees. In this scenario, 38% of the employees are not at any major risk whatsoever.

The decrease in taxes resulted in a very slight increase in economic growth and more people going to work.

Inflation doubled in 2007 and reached a peak at 28% in 2008.The fiscal make up 4-5% GDP and the trade deficit accounted for 20% GDP in which approximately $US17.5 billion dollars. The influence of high fuel combine with food prices and high domestic demand lead to high inflation. The high price of fuel in Vietnam illustrates global fuel prices and the high domestic demand of country importing fuel. Furthermore, the increase in global food prices affect detrimental to the high inflation in Vietnam.(Figure 2)

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This article is very informative toward the purpose of increasing excise taxes. I believe that Joey Connor did an excellent job at pointing out the effects of the tax increase on tobacco products. He provided information on previous tax rates, so readers can have a clear idea of the increase percentage of taxes. He also supported his arguments by incorporating other sources in his article. For instance, he incorporated the analysis done by the National Public Radio on how the increase in price of cigarettes will affect the consumer behavior.

market, in response of falling market prices of tobacco due to the oversaturated tobacco market, famers

The last part of the simulation for the year 2xx8 shows the decisions selected were the result of the “Ideal President”. The simulation showed the decisions made successfully handled the conditions in the economy and put the economy on the right track.

Government passed a law making cigarettes illegal would have numerous results. First, making cigarettes illegal means people will smoke les cigarettes. Therefore, smoking people can be healthier, leading to a longer life span. Second, illegalize smoking would also causing black markets. Because cigarette is addictive, people who smoke would do anything to get cigarettes, black market would cause crime rate to rise. Third, government will receive no taxes from cigarette industry due to the illegalizing of it. This will cause the government get less money can provide poor service. Forth, because of the illegalization, tobacco farmers will lose their jobs. Furthermore, there would be idle

We hope our project does not encounter any delay. If it is the case, we will have to create a plan to solve that matter. We want to be ready for the upcoming Medical States University September class 2015, to integrate fully simulation education in the curriculum.

There are many cities who have implemented bans on cigarettes, but China overall is still the leading consumer of cigarettes in the world. A countrywide tax on cigarettes has been proposed to their Ministry of Finance, and Ministry of Economics and Trade, but a decision has yet to be made. Tobacco production provides substantial revenue to the government and a tax increase will have a significant effect on the central government and reduction of consumption of cigarettes. According to a study done by the group proposing the tax, “a 25% tax increase will have an overall monetary benefit that far exceeds the negative impact on the cigarette industry and tobacco farmers. In financial terms alone, not counting the number of lives saved and medical care cost savings, the gain of the central government tax revenue (24.58 billion Yuan) twice exceeds the loss of tobacco farmers’ earnings, tobacco industry workers’ earning and loss of industry and local government revenue (11.74 billion Yuan)” (Hu TW 107). There many components to this calculation, but some factors included the reduction of cigarette consumption, the number of lives saved, savings in medical care costs, gains in productivity due to avoidance of premature death, industry revenue lost, lost jobs in cigarette industry, loss of tobacco income, and loss of local government

Simulations are problem-based units of learning that are set in motion by a particular task, issue, policy, crisis, or problem. The problems to be addressed by the participant may be either implicit or explicit, depending on the nature of the simulation.

Another problem caused by these policies is the loss of government revenue from tobacco taxes. According to a September 2013 report by the International Tax and Investment Center and Oxford Economics (ITIC-OE), In 2011, the Legal Domestic Sales of cigarettes fell by 80.6%, from 308 million cigarettes in 2010, to just 60 million cigarettes a year after the tax increase. Total Consumption (legal and illicit) is estimated at 317.9 million cigarettes in 2013, down 9.5% from 2012. However, only 2.4% or 7.7 million cigarettes constitute Legal Cigarettes Consumption. In 2013, excise tax loss as a percentage of potential total excise tax revenues is estimated to be 99.6% (US$ 62 million) a rise from 93.4% in 2012, the highest amongst the 14 Asia countries surveyed. Actual revenues from excise duties fell from US$ 21,627906 in 2010 to US$ 233,000 in 2013.

The impact of the change interest rates and inflation has a persistent impact on the well being of any given society. For this purpose it is the understanding that each individual in society should have an understanding of what such changes bring fourth for the man on the street. In this introduction, we are going to introduce certain key points to remember when dealing with interest rate- and inflation changes.