Discussion Questions:

I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?

Discussion Questions:

  1. What would be the effect of a 75 percent tax on lawsuit punitive awards that was proposed by then California governor Arnold Schwarzenegger in 2004 on:
    • The number of punitive awards. Demonstrate your answer using supply and demand curves. (You will post your graph as jpg. in your discussion post).
    • The number of pretrial settlements.
  2. Airlines and hotels have many frequent-flyer and frequent-visitor programs in which individuals who fly the airline or stay at the hotel receive bonuses that are the equivalent to discounts.
    • Give two reasons why these companies have such programs rather than simply offering lower prices.
    • Can you give other examples of such programs?
    • What is a likely reason why firms whose employees receive these benefits do not require their employees to give benefits to the firm?


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Cathy, CS.