Suppose the State of Massachusetts Passes a Law That Increases

question 137

Multiple Choice

Suppose the state of Massachusetts passes a law that increases the tax on alcoholic beverages.As a result,residents in Massachusetts start purchasing their alcohol in surrounding states.Which of the following principles does this best illustrate?

• A) People respond to incentives
• B) Rational people think at the margin
• C) Trade can make everyone better off
• D) Markets are usually a good way to organize economic activity

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Definitions:

Dark Red Blood

Indicates oxygen-depleted blood, often associated with venous blood or certain conditions causing altered blood coloration.

Spurts

Sudden and rapid bursts of growth, energy, activity, or the flow of a liquid.

Postmortem Examination

A postmortem examination, also known as an autopsy, is a detailed medical examination of a body after death to determine the cause and manner of death and to evaluate any disease or injury that may be present.

Coroner

An official who investigates a sudden, suspicious, or violent death to determine the cause. In some communities, this position has been replaced by the medical examiner.