Nobel Prize-Winning Economist Gary Becker Suggests That a Tax Could

question 110

Multiple Choice

Nobel prize-winning economist Gary Becker suggests that a tax could be set so that it raised drug seller costs without prohibition, and in turn would:

• A) increase seller revenues.
• B) decrease seller revenues.
• C) increase government revenues.
• D) decrease government revenues.

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Definitions:

Operating Expenses

The costs associated with the day-to-day operations of a business.

Operating Profit

Earnings derived from a corporation's principal operations, before subtracting interest and taxes.

Cash Discount Rate

A reduction on the invoice price offered by sellers to encourage prompt payment from the buyer.

Invoice

A detailed bill provided by a seller to a buyer, listing the products or services sold and the total amount due.