Some Policymakers Have Argued That Products Like Cigarettes, Alcohol, and Sweetened

question 106

Multiple Choice

Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption.All else equal, if the government decided to impose a tax on soda, the equilibrium quantity of soda would ________ and the equilibrium price of soda would ________.

• A)increase; increase
• B)increase; decrease
• C)decrease; increase
• D)decrease; decrease

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Definitions:

Forum Non Conveniens

A legal doctrine allowing a court with jurisdiction to dismiss a case if another more appropriate forum exists that would better serve the convenience of the parties and the ends of justice.

Alternative Dispute Resolution

A range of processes used to resolve conflicts or disputes without resorting to traditional court litigation, examples include mediation and arbitration.

Techniques

Methods or strategies developed to carry out a particular task or to work towards an objective efficiently.

Civil Case

A non-criminal lawsuit in which one party sues another for the recovery of a private right or compensation for a wrong.