Which of the following could be considered to be a secondary effect caused by making drugs such as marijuana, cocaine, heroin and meth illegal?
a. The higher prices that result from making drugs illegal results in more property theft by users to afford the drugs.
b. The usage of police and law enforcement resources to enforce drug laws leads to lower enforcement (and thus a higher amount) of other crimes.
c. Without the ability to use the legal system to enforce contracts in these underground markets, violence between buyers and sellers often results when one party to a drug deal does not live up to their end of the bargain, thus the amount of violence in society increases by making drugs illegal.
d. When supplying the demand for a product that has been decreed illegal by the government, the supplier has no incentive to refrain from other illegal and equally
punishable behaviors, thus increasing crime by making drugs illegal.
e. All of the above would be considered valid and important secondary effects of making drugs illegal.
e. All of the above would be considered valid and important secondary effects of making drugs illegal.
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How have some patients been harmed by Medicare reimbursement caps?
A) They have been discharged from the hospital too soon, so that the hospital can cut costs. B) They have been kept in the hospital too long, so that the hospital can get a higher reimbursement amount. C) They have had to undergo unnecessary procedures, so that the hospital can get a higher reimbursement amount. D) They have had to wait too long for essential procedures.
Beginning in 2013, a local government in Georgia is instituting a tax on owners of land at a flat rate of $100 per acre every year.
i. Explain who gains and loses from the tax. Specifically comment on what happens to the value of the land, who ends up bearing the burden of the tax. ii. If in 100 years the local government decides to repeal the tax, who will gain and who will lose as a result of the repeal? Explain.