When Interdiction Efforts Manage to Stem the Flow of Illegal

question 71

Multiple Choice

When interdiction efforts manage to stem the flow of illegal drugs into the United States, assuming no change in demand, the price of these substances rises.This price increase leads to more crime as addicts attempt to maintain their now more-expensive habits.Economists call this side-effect of the drug business

• A)the illusion of rationality.
• B)an externality.
• C)the cost disease of personal services.
• D)inflation.
• E)unemployment.

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Definitions:

Rebates

Sales promotions that allow consumers to recoup a specified amount of money after making a single purchase; most rebates require consumers to mail their receipt and proof of purchase to manufacturers.

Outdoor Advertising

A form of media used to deliver promotional messages to consumers in outdoor spaces, such as billboards, bus stops, and digital screens.

Flexibility

The ability to adapt to changes, challenges, or new requirements in an efficient and timely manner.

Reminder Advertising

A type of advertising that seeks to keep the product before the public in an effort to reinforce previous promotional activity.