Cigarettes, Children, and the FDA
Read the press release announcing the FDA's 1996 rule designed to restrict children's access to cigarettes.
Questions:
- Provide 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?
- Why would cigarette manufacturers have an incentive to target children in their advertising campaigns?
- Why are free samples and the sale of small packages of cigarettes banned by this rule?
- Since the purpose of this rule is to restrict consumption of cigarettes by children, it can be reasonably argued that it is designed to correct for imperfect information. Children exposed to advertisements published in magazines or on billboards may be convinced to consume cigarettes without being fully cognizant of the associated health risks.
- Children may be less aware of the risks associated with smoking, are easily subject to peer pressure, and may become addicted for life, resulting in a higher rate of return to advertising targeted at children.
- Since children tend to have small amounts of cash, they would be more likely to experiment with smoking cigarettes if they are either free, or are available in small (less expensive) quantities.
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