The External Costs of Alcohol Consumption Are Related To, Among

question 200

Multiple Choice

The external costs of alcohol consumption are related to, among other things, death and injury related to auto accidents caused by drunk drivers.These costs have been estimated to be about 47 cents per ounce of alcohol consumed.Taxes on alcohol amount to 23 cents per ounce.This suggests that alcohol consumption is (i) greater than the efficient or optimal amount; (ii) should be reduced to zero to eliminate the externality.

• A)i and ii
• B)i not ii
• C)ii not i
• D)neither i nor ii

---

Definitions:

Assaults

Acts of violence or threats intended to harm or intimidate another person, often punishable under criminal law.

Homicide Rates

The statistical measure of the number of homicides (intentional killings) that occur in a specified population or area within a certain period of time.

Developed Countries

Nations with advanced economic systems, high living standards, and robust infrastructures.

United States

A country located in North America, known for its diverse culture, strong economy, and influential role in global affairs.