Prohibition as a strategy for controlling externalities might actually
A. eliminate the need for elaborate enforcement efforts and detention facilities.
B. solve age-old problems, such as the susceptibility of humans to addictive behavior.
C. create new problems, such as turf wars among gangs or increased incarceration.
D. all of the options are correct.
Answer: C
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What arguments can be made for government regulation of concentrated markets? What arguments can be made against such government regulation?
What will be an ideal response?
Maximizing total revenue is the same as maximizing profit
a. True b. False
The abbreviation GATT stands for:
a. General Analysis of Taxes and Transfers. b. General Agreement on Tariffs and Trade. c. Government Agency for Trade and Transportation. d. Government Agency for Treaties and Taxes. e. General Agreement on Terms of Trade.
If the elasticity of demand is much greater than the elasticity of supply, an excise tax levied on the suppliers will
a. cause the suppliers to incur a greater burden of the tax than demanders b. cause the demanders to incur a greater burden of the tax than suppliers c. the burden of the tax will be shared equally between the suppliers and the demanders d. cause the entire burden of the tax to rest on the demanders e. Without more information as to the amount of the excise tax, who will incur a greater burden will be unclear