If Alcohol Creates Negative Consumption Externalities Then the Market Equilibrium

question 198

Multiple Choice

If alcohol creates negative consumption externalities then the market equilibrium level of alcohol consumption will be:

• A) less than is socially desirable
• B) more than is socially desirable
• C) more than is market optimal
• D) less than is market optimal

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Definitions:

VLTs

Video Lottery Terminals, a form of electronic gambling machine found in casinos and bars.

Exogenous Opiates

Narcotics, which bind to receptor sites throughout the body, including the brain, spinal cord, and bloodstream, and reduce the body’s production of endogenous opiates.

Opioids

Also known as narcotics. A class of central nervous system depressants whose main effects are the reduction of pain and sleep inducement. Opium, the alkaloid from which opioids are derived, comes from the seeds of the opium poppy, which is indigenous to Asia and the Middle East.

Heroin

A narcotic substance derived from morphine, originating from the seed pods of opium poppy plants, known for its strong addictive properties and illegality.