Which of the Following Statements Helps to Explain Why Government

question 32

Multiple Choice

Which of the following statements helps to explain why government drug interdiction increases drug-related crime?

• A)The direct impact is on buyers,not sellers.
• B)Successful drug interdiction policies reduce the demand for illegal drugs.
• C)Drug addicts will have an even greater need for quick cash to support their habits.
• D)In the short run,both equilibrium quantities and prices will fall in the markets for illegal drugs.

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Definitions:

Fixed Component

The portion of total costs that remains unchanged regardless of the level of production or business activity.

Variable Overhead Rate

The cost of indirect manufacturing expenses that fluctuate with production volume, calculated per unit of activity or base.

Efficiency Variance

A measure used in cost accounting to determine the difference between the actual cost of producing an item and the standard cost, based on the actual hours worked.

Budget Variance

The difference between budgeted figures for revenue or expenses and actual figures.