Which One of the Following Statements About Illegal Goods Is

question 101

Multiple Choice

Which one of the following statements about illegal goods is true?

• A)Taxes are more effective in changing preferences than prohibition.
• B)Prohibition is more effective in generating revenue than an equivalent tax.
• C)Taxes and penalties cannot be set to yield equivalent outcomes.
• D)Taxes generate revenues while prohibition sends a signal that might influence preferences.
• E)Taxes and prohibition eliminate the market for illegal goods.

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Definitions:

Interlocking Directorates

The practice of having the same individuals serve on the boards of directors of multiple companies, potentially influencing competitive practices.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 to preserve free and unfettered competition as the rule of trade.

U.S. Justice Department

The federal executive department responsible for enforcing the laws of the United States and administering justice.

Federal Trade Commission

A U.S. federal agency established in 1914 to promote consumer protection and the elimination and prevention of anticompetitive business practices.