If the Penalty on Sellers of an Illegal Good Is

question 251

Multiple Choice

If the penalty on sellers of an illegal good is less than the penalty on buyers of an illegal good, then supply of the good will ________ by ________ demand and the price of the good will ________.

• A) increase; more than; increase
• B) decrease; more than; decrease
• C) decrease; less than; decrease
• D) decrease; the same amount as; remain the same

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Definitions:

Meganational Companies

Refers to large corporations that operate in several countries around the world, often influencing local economies and cultures.

Meganational Strategy

A business approach that involves operating on a global scale, effectively managing and integrating operations across multiple national borders.

Local Human Capital

The skills, knowledge, and experience possessed by an individual or population, considered in terms of their value or cost to a local area or organization.

Subsidiary Human Capital

Refers to the skills, knowledge, and abilities of the employees working in a subsidiary of a larger company.