Suppose the U.S. government banned the sale and production of cigarettes. Which of the following would be most likely to occur?
a. No one would smoke anymore.
b. The amount of violence involved in the buying and selling of cigarettes would increase.
c. The price of cigarettes would decrease.
d. The supply for cigarettes would become elastic.
B
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If the price of labor increases, employers will hire more labor because it is more valuable
a. True b. False
Which of the following would raise the price level in both the short and long run?
a. an increase in taxes b. an increase in government expenditures c. a decrease in the minimum wage d. an increase in the capital stock
Which of the following sayings best reflects the concept of opportunity cost?
A. "You can't teach an old dog new tricks." B. "There is no such thing as a free lunch." C. "I have a baker's dozen." D. "There's no business like show business."
Taxes on a producing firm's ________ are meant to force decision makers to consider the full costs of their actions.
A. spillovers B. marginal production C. positive externalities D. total production