Suppose the United States government is successful in reducing the flow of drugs into the United States. What impact does this have on the supply and demand curves for illegal drugs.
a. supply decreases, demand is unaffected, and price increases
b. demand decreases, supply is unaffected, and price decreases.
c. demand and supply both decrease, leaving price essentially unchanged.
d. supply decreases, demand increases, and price increases substantially.
a
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Health insurance companies often charge high premiums because ________
A) they expect to attract high-risk individuals B) they expect to attract risk-averse individuals C) they expect to attract low-income individuals D) they expect to attract risk-neutral individuals
A patent grants
A) a guarantee of quality to consumers. B) the right to practice a profession. C) an exclusive right to an inventor of a product. D) control over a unique source or supply of raw materials.
Suppose that there is a current account deficit of $250 billion and a capital account surplus of $260 billion. It may be concluded that the
A) overall balance of payments is +10. B) overall balance of payments is -10. C) official reserve transaction account balance is +10. D) official reserve transaction account balance is -10.
The Laffer curve indicates that
a. when tax rates are low, a decrease in tax rates is likely to increase tax revenues. b. when tax rates are high, an increase in tax rates is likely to a decrease in tax revenues. c. tax revenue will always increase when tax rates are increased. d. tax revenue will always decrease when tax rates are lowered.