In Most States, Selling Marijuana Is Illegal, Even Though an Apparent

question 28

Multiple Choice

In most states, selling marijuana is illegal, even though an apparent demand exists, and the potential for revenue if sales were legalized is not insignificant. This is an example of the fact that economies

• A) must be legal.
• B) do not depend on demand.
• C) are sometimes irrational.
• D) reflect cultural values.

---

Definitions:

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Federal Depository Bank

A financial institution where the government keeps its money and manages its financial transactions.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at banks and thrifts in the event of bank failures.

Tax Statement

A document that outlines the amount of tax owed to or refunded by the government for a particular financial year.