Which of the Following Is a CORRECT Statement About Markets

question 218

Multiple Choice

Which of the following is a CORRECT statement about markets for prohibited goods?

• A) Penalizing sellers of an illegal good decreases supply and penalizing buyers decreases demand.
• B) Penalizing either buyers or sellers of an illegal good decreases the quantity bought.
• C) Taxing a good at a sufficiently high rate can achieve the same consumption level as prohibition.
• D) All of the above are correct statements.

---

Definitions:

Health, Safety

pertains to the regulations, procedures, and practices that protect the wellbeing of individuals, particularly in the workplace or public environments.

Technical Standards

Established norms or requirements in regards to technical systems and their components, such as quality, safety, and interoperability standards to ensure compatibility and efficiency.

Import Quota

A government-imposed limit on the quantity of a certain good that can be imported into the country.

Tariff

A tax imposed on imported goods and services, aimed at making foreign products more expensive and protecting the domestic industry.