A government ban on a good that suffers from overconsumption may be ineffective if the:
A. likelihood of being caught breaking the ban is very low.
B. punishment for breaking the ban is severe.
C. likelihood of being caught breaking the ban is sufficiently high.
D. public did not participate in setting the punishments.
Answer: A
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The liquidity of an asset indicates: a. its buying power
b. the ease with which it can be converted into cash without a significant loss of value. c. the ease with which it can be converted into another asset. d. how likely people are to trade it internationally. e. its intrinsic value.
This year, Abigail earned $15,000 and she paid 15 percent in income and payroll taxes. She qualified for Medicaid and food stamps. For every $100 that she earns, Abigail loses $35 in Medicaid benefits and $15 in food stamps. Abigail faces an effective marginal tax rate of
a. 15 percent. b. 35 percent. c. 50 percent. d. 65 percent.
Suppose for some firm that average total cost is minimized at Q1 units of output. For a monopolistically competitive firm in long-run equilibrium, Q1
a. is also the level of output at which marginal cost equals average total cost. b. exceeds the level of output at which there is a point of tangency between the demand curve and the average total cost curve. c. exceeds the level of output at which marginal revenue equals marginal cost. d. All of the above are correct.
During a presidential campaign, the candidates from each party typically describe their plans to maintain or change federal taxes on personal and business income. Are these policy statements generally positive or normative in nature?
A. Both positive and normative B. Positive C. Normative D. Neither positive or normative