A Fact That Argues in Favour of Prohibition and Against

Multiple Choice

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) prohibition raises more government income.