A government ban on a good that suffers from overconsumption may be ineffective if the:
A. likelihood of being caught breaking the ban is very low.
B. punishment for breaking the ban is severe.
C. likelihood of being caught breaking the ban is sufficiently high.
D. public did not participate in setting the punishments.
Answer: A
Economics
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Bid-rigging is more likely when
a. auctions are for larger amounts b. auctions are frequent c. auctions are infrequent d. the auctioneer is paid on commission rather than a fixed fee
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