The Production of Methamphetamine (Meth)is a Social Problem in the Midwest.Iowa

question 28

Multiple Choice

The production of methamphetamine (meth) is a social problem in the Midwest.Iowa is considering two potential programs: Operation Methbust would increase the number of sheriffs' deputies to search out and destroy methamphetamine labs.Operation Say No to Meth would increase the training required of public school teachers so that they could better educate students about the health risks of using meth.Assuming that each program were successful,which of the following statements is correct?

• A)Both Operation Methbust and Say No would reduce the equilibrium quantity and increase the equilibrium price of meth.
• B)Both Operation Methbust and Say No would increase the equilibrium quantity and reduce the equilibrium price of meth.
• C)Both Operation Methbust and Say No would reduce the equilibrium quantity of meth;Operation Methbust would increase the equilibrium price,whereas Say No would reduce the equilibrium price of meth.
• D)Both Operation Methbust and Say No would reduce the equilibrium price of meth;Operation Methbust would reduce the equilibrium quantity,whereas Say No would increase the equilibrium quantity of meth.

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Definitions:

Net Income

The total profit of a company after deducting all expenses, taxes, and losses, indicating its financial performance over a period.

Total Expenses

The sum of all costs and expenses incurred by a business during a specific period, including operating expenses and cost of goods sold.

Direct Materials

Raw materials that can be directly linked to the production of specific goods or services.

Factory Overhead

Indirect costs associated with manufacturing, such as utilities, maintenance, and management expenses, not directly tied to production volumes.