Which one of the following statements about illegal goods is true?

Question

Quizplus · Accepted Answer

Taxes on illegal goods can generate revenue for governments while still allowing individuals to access these goods if they choose to pay the tax. Prohibition, on the other hand, creates a black market where individuals may be willing to pay even higher prices for these goods and can lead to increased criminal activity. Additionally, prohibition does not necessarily change individuals' preferences for these goods, while taxes may provide an incentive to reduce consumption. Therefore, taxes can be more effective in generating revenue and influencing behavior than prohibition.

Which One of the Following Statements About Illegal Goods Is