Suppose the State of Illinois Passes a Law That Bans

question 39

Multiple Choice

Suppose the state of Illinois passes a law that bans smoking in restaurants.As a result,residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there.Which of the following principles does this best illustrate?

• A)People respond to incentives
• B)Rational people think at the margin
• C)Trade can make everyone better off
• D)Markets are usually a good way to organize economic activity

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Definitions:

Prevalence

The total number of cases of a disorder occurring in a population over a specific period of time.

United States

A country located primarily in North America, comprised of 50 states, a federal district, five major self-governing territories, and various possessions.

Mania

A mental state characterized by extremely elevated mood, energy, and activity levels, often associated with bipolar disorder.

Neurotransmitter

Chemicals in the nervous system that transmit signals between neurons or from neurons to muscles.