A Fact That Argues in Favour of Prohibition and Against

question 100

Multiple Choice

A fact that argues in favour of prohibition and against taxes on illegal drugs is that

• A)prohibition sends a signal that might influence preferences.
• B)penalties for illegal activities with prohibition are less than the penalties for tax evasion.
• C)a black market is easier to maintain under prohibition than under the tax code.
• D)search activity decreases with prohibition.
• E)prohibition raises more government income.

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Definitions:

Credit Card

A payment card issued by a financial institution that allows the cardholder to borrow funds with the promise to repay, with interest, at a later date.

Relative Cumulative Frequency

A statistical measure that shows the proportion of observations below a particular value in a dataset.

Percentile

A measure that indicates the value below which a given percentage of observations in a group falls.

Frequency Distribution

A table or chart that gives each piece of data in the set and the frequency, or the number of times that it appears in the data set.