In an Attempt to Limit the Supply of Illegal Liquor

question 299

Multiple Choice

In an attempt to limit the supply of illegal liquor, the Russian government has restricted sugar availability (sugar is used to increase alcohol content) . Russians also like to sweeten their tea with jam, another product made using sugar. Which graph in Figure 4-11 depicts the impact of sugar rationing on the Russian tea market?

• A)1
• B)2
• C)3

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Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Normative

Relating to or dealing with norms, especially in the sense of prescribing what ought to be rather than describing what is.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Positive Economic Statement

A factual claim about the world that can be tested and validated, referring to what is, rather than what ought to be.