What Would Result from Government Attempts to Reduce the Flow

question 202

Multiple Choice

What would result from government attempts to reduce the flow of illegal drugs into the country

• A)Drug interdiction would lower prices and total revenue in the drug market.
• B)Drug interdiction would decrease drug-related crime.
• C)Drug interdiction would shift the supply curve of drugs to the left.
• D)Drug interdiction would shift the demand curve for drugs to the left.

Identify the effects of government borrowing on interest rates and real GDP.

Recognize how fiscal policy and national debt affect future generations.

Understand the multiplier effect and its implications for the economy.

Explain the role of fiscal policy in stabilizing the economy and the limitations of automatic stabilizers.

---

Definitions:

Troubles

Privately felt problems that come from events or feelings in one individual’s life.

Issues

Problems that affect large numbers of people and have their origins in the institutional arrangements and history of a society.

Societal Forces

The various external influences, such as cultural norms, laws, and population dynamics, that affect individuals and shape society.

Institutional Arrangements

The complex relationships and organization of institutions within a society that shape social, economic, and political activities.