Principles of Economics

Principles of Economics

Introduction

The main purpose of this paper is to conduct the economical analysis. The paper is the depiction of alcohol abuse and the possible solutions of this abuse. The paper is also an analysis of the ways through which the prescription drugs can affect the demand and supply of other products and services in United States. Along with this, the paper depicts the reasons of importance of elasticity of demand and the examples of increasing-cost industries in the state and the reasons of positive slope of supply curve.

Alcohol Abuse

Alcohol generates for society a health and economic impact very high. The alcohol abuse presents some complications that have very different personal costs, social economic and very important. It is estimated that alcohol is responsible for approximately 12,000 deaths annually and has associated costs of approximately 3,300 million euros. The economic consequences of alcohol abuse are difficult to determine because many causes of disease or aggravation thereof, because of accidents, generates violence subverts couples, and even death. Furthermore, treatment of it must be approached from different perspectives, using a multidisciplinary team of specialists and accompanying drug treatment. Much of the costs attributable to alcoholism are indirect and with a very high impact on society.

Alcohol generates an impact on society and high economic health. Thus, a report by the Spanish Drug Observatory in 2001 estimated that alcohol was responsible for more than 12,000 deaths in 2001. Of these, about 2,500 have occurred due to traffic accidents, 4,000 deaths from cirrhosis and cancer of the mouth, pharynx and esophagus 2,400 deaths. Also noteworthy is that suicides and homicides starring alcohol totaled 1,000. Globally it is estimated that alcohol may be responsible for the deaths of 1.8 million people a year. Some macroeconomic estimates of costs related disorders alcohol abuse believe that these are situated around 2-5% of GDP, a very important figure is justified by the impact the consequences of alcohol abuse (Barnett1993).

According to a report by the Department of Health of the Generalitat of Catalonia in 2002, the annual impact of alcoholism in Spain could amount to 3.833 million euros. The majority, approximately 2,460 million euros would be related to the impact on the workplace, primarily productivity losses (1,731,000) and absenteeism related to temporary disability (728,500,000). The impact of alcohol and / or other drugs produced in the workplace is very significant. Studies in the U.S., systematized by NIDA, show that when comparing employees with substance abusers who do not, those who do are more likely to be less productive, involved in accidents, changed jobs frequently, be late or absent from work (Press1996). This leads to damage to the company or organization and workers increased illness, accidents, absenteeism, and work disability, along with reduced productivity, and even creating problems working environment.

Impact of Prescription Drug on Demand and Supply of Other Products

There is a very high impact of prescription drugs on the demand and supply of other products. The increased demand of the prescription drugs also increases the ...