The External Costs of Alcohol Consumption Are Related To, Among

question 200

Multiple Choice

The external costs of alcohol consumption are related to, among other things, death and injury related to auto accidents caused by drunk drivers.These costs have been estimated to be about 47 cents per ounce of alcohol consumed.Taxes on alcohol amount to 23 cents per ounce.This suggests that alcohol consumption is (i) greater than the efficient or optimal amount; (ii) should be reduced to zero to eliminate the externality.

• A)i and ii
• B)i not ii
• C)ii not i
• D)neither i nor ii

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Definitions:

Andes

A major mountain range along the western edge of South America, formed by the subduction of the Nazca Plate beneath the South American Plate.

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic materials (such as ash and rock fragments) that flow down the slopes of a volcano during an explosive eruption.

Mudflows

Rapid flows of water-saturated earth material, primarily composed of mud and often triggered by heavy rains or volcanic activity.

River Valley

a long, narrow region carved by river erosion, often surrounded by hills or mountains.