The Rand Corporation Estimates That the External Costs Imposed by Alcohol

question 178

Multiple Choice

The Rand Corporation estimates that the external costs imposed by alcohol consumption (for example, deaths caused by drunk drivers) to be 48 cents per ounce consumed.Taxes on alcohol amount to 23 cents per ounce consumed.This information suggests: (i) alcohol is overconsumed; (ii) alcohol taxes should be raised.Which of these statements is correct?

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

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Definitions:

Reversibility

A principle in cognitive development where an action can be reversed, returning to its original state.

Decentration

The cognitive ability to consider multiple aspects of a situation simultaneously and understand that changes in one aspect do not necessarily affect another, crucial in Piaget's theory of child development.

Preoperationalism

A stage in child cognitive development where children from about 2 to 7 years old engage in symbolic play and struggle with logic and taking the perspective of others.

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the abilities of logical thought about concrete events, understanding the concepts of conservation, and the ability to classify and serial order.