audioecon   Smart listening for students of economics

Link: http://www.npr.org/blogs/money/2010/08/03/128960709/the-tuesday-podcast

Summary: As part of a quest to prove whether President Roosevelt drank Moonshine at the White House, the Planet Money team discusses the history and economics of prohibition.

Original Air Date: August 3, 2010

Length 18:05

Main story content begins:  1:31

Discussion Prompt: Using what you know about elasticity and what you learned from this podcast, what would be your ‘economic expert’ opinion on a proposal to implement a tax specifically on the purchase of marijuana (similar to a tax specifically on alcohol) in the sates where marijuana sales are legal? Connect your economic opinion to details from the podcast. If you use outside information, provide at minimum links for citations.

Follow-up Prompt: A question to expand your application of elasticity ideas: If marijuana were legalized (and taxed), what other markets might be impacted (related goods)?  How might the legalization impact what goods consumers consider to be substitutes for marijuana? Do you think it would change?