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Economics , Fifth Edition
William Boyes, Arizona State University
Michael Melvin, Arizona State University
Internet Exercises
Cigarettes, Children, and the FDA


Read the press release announcing the FDA's 1996 rule designed to restrict children's access to cigarettes.

Questions

  1. Chapter 5 of your text provides a number of reasons justifying government intervention in the economy. Based on your reading of the requirements specified by this rule, which of these reasons applies to this FDA rule?
  2. Why would cigarette manufacturers have an incentive to target children in their advertising campaigns?
  3. Why are free samples and the sale of small packages of cigarettes banned by this rule?




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