• Card 89 / 100: If smoking is bad for you, then why do farmers grow tobacco?

    Answer:
    Some consumers are smokers and are willing to pay a lot of money for cigarettes. Companies then find it worthwhile to spend a lot on tobacco in order to produce cigarettes. The high price of tobacco makes it attractive for some farmers to plant it, rather than other crops. Sample Partial Credit Answer To make money.

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Capitalism: The Market Economy

Access: Public Peer Review

Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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