Suppose the State of Wyoming Passes a Law That Increases

question 132

Multiple Choice

Suppose the state of Wyoming passes a law that increases the tax on cigarettes.As a result,smokers who live in Wyoming start purchasing their cigarettes in surrounding states.Which of the following principles does this best illustrate?

• A)People respond to incentives.
• B)Rational people think at the margin.
• C)Trade can make everyone better off.
• D)Markets are usually a good way to organize economic activity.

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Definitions:

Gate-Control Theory

The theory that the experience of pain depends in part on whether pain impulses get past a neurological “gate” in the spinal cord and thus reach the brain.

Critical Periods

Specific times during an organism's life span when it is more sensitive to environmental influences or stimulation than at other times.

Sensory Adaptation

A process by which the sensitivity to a stimulus decreases over time when the stimulus is constantly present.

Gate-Control Theory

A theory that suggests the spinal cord contains a neurological "gate" that either blocks pain signals or allows them to continue on to the brain.