A fact that argues in favour of prohibition and against taxes on illegal drugs is that
A)prohibition sends a signal that might influence preferences.
B)penalties for illegal activities with prohibition are less than the penalties for tax evasion.
C)a black market is easier to maintain under prohibition than under the tax code.
D)search activity decreases with prohibition.
E)all of the above

Question

Quizplus · Accepted Answer

Prohibition sends a signal that might influence preferences, indicating that the possession and sale of drugs are not socially acceptable. This could potentially deter individuals from using or buying drugs, reducing demand and ultimately leading to lower rates of drug use. However, taxing illegal drugs could potentially create an incentive for individuals to continue using them, as they may be willing to pay the extra cost to continue their drug use.

A Fact That Argues in Favour of Prohibition and Against