Ch. 6 – Rational Choice Theory, Black Market Economics

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perception
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Drug users entry into their substance abuse is facilitated by their:
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rational decision making
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Research seems to indicate from its onset that drug use is controlled by ____ ____ _____.
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yes
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Are most recreational drug users rational? even addicts?
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curiosity satisfied, dreamlike state (“get high”), self medicate, confidence, energy, pain relief, anxiety control, peer influence, social confidence, boredom relief
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What are some desired effects of drug use?
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use
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As perceived risk and disapproval go up, ____ goes down?
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no
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Does prohibition eliminate the demand or supply of drugs?
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increases
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Decreasing the legal supply of a drug ____ demand for illegal versions of the drug.
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high
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High level of risk in the black market demands ____ profit.
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few drug sellers are making substantial earnings, most drug dealers spend a fraction of their time selling, and the drug market is a perpetually fluid situation
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What are some characteristics of drug markets?
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prison
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The criminal justice system produces an unending flow of drug offenders in and out of _____
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yes
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Is incarcerating many low level drug dealers expensive?
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information asymmetry, suppliers have monopoly power, suppliers willing to use violence, no legal recourse, demand is elastic
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How are customers disadvantaged in the Black Market?
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governments, agencies
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In the drug market, customers cannot safely seek help from _____ or public ______.
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80 20 rule
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Drug use is distributed very unevenly across drug users. This poses potential problems for prohibition enforcers, especially if they broadly target all illegal drug users. What is this called?
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frequent
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What type of users account for the vast majority of drug expenditures?
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hiding activities, transporting goods in secret, bribing officials, compensating employees for risk of injury, death, or incarceration
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Black market suppliers incur costs that do not exist in a legal market, such as:
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drugs
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Prohibition potentially decreases the demand for:
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production, distribution
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Drug prohibition attempts to reduce illegal drug use by restricting illegal drug _____ and _____.
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drive illegal drug suppliers out of business
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What is the immediate goal of prohibition?
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drive up illegal drug prices
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What is the ultimate goal of prohibition?
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cooperation
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Drug prohibition is hindered greatly by a lack of _____ with law enforcement.
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consensual
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Illegal drug transactions are “_____ Crimes”.
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deterrence
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action of discouraging an action or event through instilling doubt or fear of the consequences
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reducing
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*Rational choice theory* suggests that deterrence strategies can be effective in _____ illegal drug consumption under the right conditions.
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weaker
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Deterrence against illegal drugs is much_______ than most people realize.
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low
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The probability of actually getting caught, convicted, and punished is typically extremely _____ for any particular act of drug consumption or any specific drug transaction.
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light
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The punishment for lesser drug offenses is typically fairly _____.
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deter
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There are a number of factors which constrain the ability of the CJS to effectively _____ illegal drugs.
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normal legal/ procedural constraints, political constraints, community support constraints, high search costs, adaptive responses, substitution effects, driving up drug prices
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What are some factors that limit the deterrence of drug use?
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reading packet*****
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factors limiting deterrence
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legal
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The vast majority of those who abstain from using drugs would have little or no desire to do these drugs, even if they were _____.
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prohibited
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Drug prohibition would not be expected to substantially reduce the number of people who use _____ drugs.
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supporters
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In terms of prohibition, who argues that it drives up the price of illicit drugs by restricting supply?
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consumption
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By restricting the supply of illegal drugs and driving up their prices, prohibition might substantially decrease drug ______.
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heavy
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There is evidence that prohibition may be effective in reducing drug consumption somewhat among ______ users.
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inelastic
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When the demand for drugs is relatively_________, supply side policies do not generate very large reduction in drug use, but do cause large increases in drug prices.
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no
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Is the demand for illegal drugs very price sensitive?
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temporarily
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Drug busts ______ disrupt illegal drug supply and take some drug dealers off the street, but by driving up illegal drug prices, this increases the profitability of supply of illegal drugs.
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restricting
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Because the demand for illegal drugs is inelastic (price insensitive), artificially _____ supply increases illegal drug revenues and profits.
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geographical displacement (balloon effect)
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squeezing drug supply in one place through tighter control often produces an increase in activity in another place
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lots
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Cracking down on drugs in areas with ______ of illegal drug sales is a lot like playing the game of “Whack-a-mole”
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substitution effect
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consumers tend to buy more of the good that has become relatively cheaper, and less of the good that is now relatively more expensive. This is known as:
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substance displacement
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If the use of one drug is controlled by reducing supply or demand, suppliers and users move on to another drug with similar psychoactive effects, but less stringent controls.
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other
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Driving up the price of one illegal drug often encourages people to switch to ____ illegal drugs.
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heroin
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Cracking down on Oxycontin caused users to substitute towards what?
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dangerous, safer
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Drug prohibition encourages people to substitute more ______ Drugs for ______ ones.

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