Which of the Following Statements Helps to Explain Why Government

question 32

Multiple Choice

Which of the following statements helps to explain why government drug interdiction increases drug-related crime?

• A)The direct impact is on buyers,not sellers.
• B)Successful drug interdiction policies reduce the demand for illegal drugs.
• C)Drug addicts will have an even greater need for quick cash to support their habits.
• D)In the short run,both equilibrium quantities and prices will fall in the markets for illegal drugs.

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Definitions:

Marginal Tax Rates

The rate at which the next dollar of taxable income will be taxed, according to the income tax brackets set by the government.

Capital Gains

The profit from the sale of an asset or investment, which is the difference between the sale price and the purchase price.

Marginal Tax Rates

The fraction of your income subjected to taxation, based on the qualifying tax brackets.

Net Working Capital

It calculates the short-term liquidity of a company, highlighting the funds available to run its day-to-day operations.