If the demand for heroin is inelastic and heroin users get the money to pay for heroin by committing crimes, policymakers who want to reduce crime should:
A) make it harder to find heroin.
B) tax heroin.
C) try to lower the price of heroin.
D) try to raise the price of heroin.
Ans: C) try to lower the price of heroin.
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What is the largest problem associated with using a tax to correct for an externality? Explain
What will be an ideal response?
An area that is rising significantly in cost is:
a. Health care b. Home appliances and electronics c. College tuition d. both a and c are correct
If the quantity of housing supplied in a community is less than the quantity of houses demanded, the existing price:
A) will remain unchanged. B) will fall to clear the market. C) will either fall or remain unchanged. D) is below the market equilibrium price.
Which of the following statements is true?
A. Discrimination against women and blacks reduces the demand for these workers resulting in lower wages paid these workers. B. Discrimination is no longer a problem in the United States. C. A negative income tax system is a plan where everyone pays the same percentage of their income as taxes. D. A negative income tax system is a plan where those below a certain income receive a cash payment from government.