Suppose one county in Missouri decides it wants to reduce alcohol consumption, so the county passes a law that raises the price of a bottle of beer by $1 . As a result, people drive to other counties to drink alcohol, which results in an increase in drunk driving. This illustrates the principle that people respond to incentives
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Recall the Application. The experiment conducted by Blinder showed that the actual process of having committee meetings and discussions
A) improved the group's overall performance. B) tended to polarize the group into two distinct factions. C) magnified the individual group member's differences. D) related to the average performance of the individual group members.
Unlike a perfect competitor, a monopolist faces the market demand curve
Indicate whether the statement is true or false
Suppose the Good Food supermarket increases the price of a pound of bananas from $.75 to $1.25 and finds that the quantity of bananas it sells per month drops from 1,500 to 1,000 . The price elasticity of demand coefficient for bananas in this price range is:
a. 0.80 b. 3.00. c. 2.00 d. 0.50.
Taxes constitute the difference between GDP and disposable income
a. True b. False Indicate whether the statement is true or false