The costs involved with breaking a ban placed on a good:
A)depend on the punishment associated with rule breaking.
B)depend on the likelihood of being caught.
C)depend on the likelihood of being punished if caught.
D)All of these can affect costs involved with breaking a ban placed on a good.

Question

Quizplus · Accepted Answer

All of the factors listed (punishment associated with rule breaking, likelihood of being caught, likelihood of being punished if caught) can influence the costs involved with breaking a ban placed on a good. For example, if the punishment for breaking the ban is severe, the costs will be higher than if the punishment is relatively light. Similarly, if the likelihood of being caught is high, the costs of breaking the ban will increase as well. Likewise, if there is a high likelihood of being punished, this will also contribute to the overall costs of breaking the ban.

The Costs Involved with Breaking a Ban Placed on a Good