Indifference curves and budget lines — practice question

With reference to Table 1.1, is smoking positively correlated with life expectancy at birth?

Explain the possible effects on an economy if a government policy were to set a minimum price for a product such as alcohol.

Discuss whether the information supports the view that higher incomes raise consumer well-being.

Using indifference curve analysis, explain what happens to a consumer’s satisfaction and demand when income rises. Also assess whether the evidence in Table 1.1 on income levels, shown by GDP per capita, and smoking is enough to support that analysis.