In Regards to the Criminalization of Drugs, Nobel Prize-Winning Economist

question 213

Multiple Choice

In regards to the criminalization of drugs, Nobel prize-winning economist Gary Becker suggested:

• A) raising the capital gains tax to help provide more government resources for the war on drugs.
• B) that the government should make drugs legal and then place a tax on drugs to control their usage.
• C) subsidizing the consumption of illegal drugs in an effort to avoid deadweight losses.
• D) All of the answers are correct.

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Definitions:

Rents

Payments made for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount needed to keep a factor of production in its current use.

Dollar Loss

A decrease in the value of an investment, expressed in dollar terms, compared to its purchase price.

AIG

American International Group, a multinational finance and insurance corporation known for its extensive global operations and services.

Fannie Mae

A government-sponsored enterprise (GSE) in the United States aimed at expanding the secondary mortgage market by securitizing mortgages into mortgage-backed securities.