Mail-Order Sales of Wine Are Illegal in Some States

question 74

Multiple Choice

Mail-order sales of wine are illegal in some states. Some wineries argue that the ability to ship directly to consumers helps small wineries and that shipping bans unfairly protect home-state wineries, raising prices to consumers. Others argue that the bans allow states to collect tax revenues and to keep wine from being sold to minors. Economists looking at this case would say that one effect of the ban is to prevent:

• A) reverse engineering.
• B) a network externality.
• C) competition to existing sellers.
• D) a winner-takes-all market.

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Definitions:

Point Method

A technique used in job evaluation to quantify the value of a job's aspects or components, assigning points based on complexity, skills required, and responsibilities.

Expectancy Theory

A motivation theory suggesting that an individual's willingness to work is based on the expectation that their efforts will lead to desired performance and rewards.

Instrumentality Theory

A concept in motivation theory that suggests the perceived relationship between performance and outcomes affects motivation.

Valued Reward

A tangible or intangible benefit given in recognition of achievement, performance, or service deemed desirable by the recipient.