Which One of the Following Statements About Illegal Goods Is

question 101

Multiple Choice

Which one of the following statements about illegal goods is true?

• A)Taxes are more effective in changing preferences than prohibition.
• B)Prohibition is more effective in generating revenue than an equivalent tax.
• C)Taxes and penalties cannot be set to yield equivalent outcomes.
• D)Taxes generate revenues while prohibition sends a signal that might influence preferences.
• E)Taxes and prohibition eliminate the market for illegal goods.

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Definitions:

Charity Care

Healthcare services provided for free or at a reduced cost to individuals unable to pay.

Receivables

Money owed to a company by its customers for products or services provided on credit.

Not-for-Profit Entities

Organizations that operate for purposes other than generating profit, often focused on social, educational, or charitable objectives.

Merger

The combination of two or more companies into a single legal entity, typically to expand operations and take advantage of synergies.