Suppose the U.S. Food and Drug Administration restricts the amount of prescription opiates produced and sold in the U.S. market. What is the likely effect on the market for drugs used to control chronic pain in the United States?
a. The policy will result in fewer individuals overdosing from heroin.
b. The price of heroin (an illegal opiate) and its quantity imported will both decrease.
c. The price of prescription opiates will increase and the quantity consumed decrease.
d. Marijuana prices, a cocaine substitute grown domestically, will fall.
e. Demand for drugs is highly elastic, and these policies have little or no effect on consumption.
c. The price of prescription opiates will increase and the quantity consumed decrease.
You might also like to view...
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls and aggregate supply rises. d. Aggregate demand rises and aggregate supply rises. e. Aggregate demand falls and aggregate supply falls.
What was the result of the Climate Summit held in December 2009?
a. All countries signed binding agreements to reduce their greenhouse gases by 20% during the next 10 years. b. No country signed binding agreements to reduce their greenhouse gases. c. Only developed industrialized countries agreed to reduce their greenhouse gases by 20% during the next 10 years. d. Only China and India agreed to reduce their greenhouse gases by 20% during the next 10 years.
When a firm buys stocks or bonds issued in another country they are engaging in foreign direct investment.
Indicate whether the statement is true or false.
The fact that not everyone places all of his/her savings in U.S. Treasury bonds indicates that:
A. most investors are not risk averse. B. most people are risk-neutral. C. many investors are actually risk seekers. D. even risk-averse people will take risk if they are compensated for it.