Category: Economics

The cigarette tax in Tennessee was 35 cents per pack in late 2015. Then Governor Haslam signed a bill increasing this tax to 70 cents per pack. After the tax increase the size of the deadweight loss will
less than double.
double.
more than double.
Not enough information is given.

➤ Can the $100 bonus change overall welfare or market efficiency under bargaining?
Yes. The bonus can raise efficiency by increasing sales and reducing bargaining holdouts, which can improve total surplus. However, it can also create distortions, like shifting effort toward less profitable customers or causing information problems. Net welfare depends on demand sensitivity, bargaining rules, and any externalities from the incentive design.

➤ Why are community members and the environment considered stakeholders?
Community members and the environment are stakeholders because company activities influence local well‑being, health, land use, and ecosystem services. Their interests include public safety, jobs, pollution control, and resource conservation. Recognizing them helps firms manage social license to operate, reduce reputational risk, and meet sustainability and regulatory expectations.

➤ Why should 3DWorks segment industries rather than use one uniform price?
Industries differ in budget, value derived, and price sensitivity. Segmentation lets the firm extract more value where willingness to pay is higher and offer lower prices where adoption matters. This increases overall profit, reduces lost sales, and allows tailored features, support, and contract terms that match each industry’s purchasing cycle.

➤ Why did governments limit imports and encourage exports under mercantilism?
Governments limited imports and subsidized exports to build national reserves of gold and silver and to support domestic industries. They used tariffs, quotas, bounties, and state-backed charters to reduce foreign competition. The goal was a favorable trade balance, more manufacturing jobs, and greater military and diplomatic influence.

Approximately what percentage of the capital investment portion of the U.S. federal budget goes toward Department of Defense acquisitions?
Greater than 50%
Between 40% and 50%
About one-third (33%)
Only a small percentage of federal capital investments are for defense acquisitions