What Is the Economic Reasoning Behind the Proposal to Legalize

question 108

Multiple Choice

What is the economic reasoning behind the proposal to legalize drugs?

• A) Legal drugs will greatly increase the supply, which will reduce the price Americans pay to foreign producers of the drugs.
• B) All forms of government restrictions on behavior are immoral and ought to be removed.
• C) Legal drugs will be much cheaper than illegal drugs, which will reduce incentive for crime to obtain money for drugs and to protect drug "businesses."
• D) Legal drugs will be more expensive than illegal drugs, and the market system will encourage more production, thus lowering the price.
• E) Dealing with supply is always easier than dealing with demand, and legalization accomplishes that.

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Definitions:

Ending Bank Statement Balance

The final balance on a bank statement at the end of a given period, reflecting all transactions that occurred during that time.

Allowance for Doubtful Accounts

A financial accounting tool used to estimate the amount of receivables that will likely be uncollectable.

Bad Debt Expense

An accounting term representing the amount of revenue considered uncollectible from customers or clients, typically recorded as an expense.

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay at a later date.