Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices
a. encourage marijuana use, and the evidence supports this argument.
b. encourage marijuana use, but the evidence does not support this argument.
c. discourage marijuana use, and the evidence supports this argument.
d. discourage marijuana use, but the evidence does not support this argument.
b
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Which of the following happens if the real interest rate of an economy rises?
A) Labor demand increases. B) Labor supply falls. C) Investment falls. D) Consumption increases.
In order to ensure consistency across goods and services, elasticities should always be calculated based on absolute changes in quantity demanded
Indicate whether the statement is true or false
When the US government engages in deficit spending, that spending is primarily financed by
(a) increasing the required reserve ratio (b) borrowing from the World Bank (c) issuing new bonds (d) appreciating the value of the dollar (e) depreciating the value of the dollar
Exhibit 15-2 Production possibilities curves for U.S. and Mexico
As shown in Exhibit 15-2, the United States has a comparative advantage over Mexico in:
A. wheat, but not in cloth. B. cloth, but not in wheat. C. both wheat and cloth. D. neither wheat nor cloth