PRINCIPLES OF MICROECONOMICS (OER)
17th Edition
ISBN: 9781506698144
Author: OpenStax
Publisher: XANEDU PUBLISHING
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Textbook Question
Chapter 1, Problem 8SCQ
The chapter defines private enterprise as a characteristic of market-oriented economies. What would public enterprise be? Hint: It is a characteristic of command economies.
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The chapter defines private enterprise as a characteristics of market-oriented economies. What would public enterprise be? It is a characteristics of a command economies.
According to the invisible hand concept, the best way for a society to encourage the creation of jobs and the production of the products most wanted by consumers would be to:
A) Permit government owned industries, such as telecommunications, transportation, and energy, and operate these firms as nonprofit organizations.
B) Allow private ownership of businesses, but make use of extensive regulation to force businesses to behave in a socially desirable way.
C) Allow entrepreneurs personal freedom to follow their own self-interest.
D) Impose high taxes on individuals, and use the revenue to subsidize businesses to encourage them to produce the maximum rate of output.
What is an example of direct public provision of goods and services? ( )
a charity hospital funded by public donations that offers free treatment to the rural poor
a mobile government library that travels to rural villages offering access to books
a pharmacy in a local shopping centre that provides treatment direct to the public
a private school that offers free places to children of low income families
Chapter 1 Solutions
PRINCIPLES OF MICROECONOMICS (OER)
Ch. 1 - What is scarcity? Can you think of two causes of...Ch. 1 - Residents of the town of Smithfield like to...Ch. 1 - A consultant works for 200 per hour. She likes to...Ch. 1 - A computer systems engineer could paint his house,...Ch. 1 - What would be another example of a system in the...Ch. 1 - Suppose we extend the circular flow model to add...Ch. 1 - What is an example of a problem in the world...Ch. 1 - The chapter defines private enterprise as a...Ch. 1 - Why might Belgium, France, Italy, and Sweden have...Ch. 1 - Give the three reasons that explain why the...
Ch. 1 - What are three reasons to study economics?Ch. 1 - What is the difference between microeconomics and...Ch. 1 - What are examples of individual economic agents?Ch. 1 - What are the three main goals of macroeconomics?Ch. 1 - How did John Mayhem Keynes define economics?Ch. 1 - Are households primarily buyers or sellers in the...Ch. 1 - Are firms primarily buyers or sellers in the goods...Ch. 1 - What are the three ways that societies can...Ch. 1 - What is globalization? How do you think it might...Ch. 1 - Suppose you have a team of two workers: one is a...Ch. 1 - Why would division of labor without trade not...Ch. 1 - Can you think of any examples of free goods, that...Ch. 1 - A balanced federal budget and a balance of trade...Ch. 1 - Macroeconomics is an aggregate of what happens at...Ch. 1 - Why is it unfair or meaningless to criticize a...Ch. 1 - Suppose, as an economist, you are asked to analyze...Ch. 1 - Why do you think that most modern countries...Ch. 1 - Can you think of ways that globalization has...
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- According to Adam Smith’s The Wealth of Nations, when it comes to government oversight in the free market and regulations, the less intervention, the better. Does the government play an important role in encouraging businesses to behave in an ethical manner? Explain the basis for your answer. What role do environmental laws have in a capitalistic system?arrow_forwardThe government uses several tools to implement environmental regulation. For example, mandatory production standards are designed to prevent companies from damaging a public good such as air or water. Emission taxes that create financial incentives for industries to reduce known pollutants, for example, from oil and coal production, are used to reduce negative externalities. The government can also force a company that causes an environmental problem to clean it up, thus solving the free rider problem. Nevertheless, government regulation imposes costs on society: Higher production costs due to regulation may be passed on to households in the form of higher prices, which—if large enough—can harm the economy. Legislation and its enforcement increase the size and cost of government. What type of analysis does government engage in to protect public goods? Explain using economic terms. What is government goal?arrow_forwardwhat are the three institution of government that protect individuals right in a market economy, explain their functionsarrow_forward
- Define the principle of rival consumption. A. idea that subsidies should be given to rival companies in order to encourage competition B. idea that individuals work together to attain private goods because a group can more easily attain private goods than an individual can C. idea that individuals are rivals in consuming private goods because one person’s consumption reduces the amount available for others to consume D. idea that only the strongest entities will be able to attain and consume private goodsarrow_forwardSuppose Fischer Pond is a common-property resource—anyone can fish without having to pay for access. Locke Lake is privately owned—people who want to fish must purchase one of a limited number of permits from the lake's owner each season. According to the incentives that private ownership creates, which of the following would you expect to happen? Check all that apply. The owner of Locke Lake is likely to keep the lake clean and unpolluted. The owner of Locke Lake is likely to limit the number of fishing permits in order to maintain a plentiful stock of fish. Fischer Pond is less likely to experience a dwindling stock of fish each season.arrow_forwardWhich of the following is a characteristic of a public good, as defined by economists? Group of answer choices -Any good that the government provides is a public good. -The good is free, such as education. -The good is nonexcludable -The good is depletable (or rivalrous).arrow_forward
- How do you think a centrally planned economy versus a market economy would perform under each measure of efficiency?arrow_forwardWhich of the following is not a constraint in achieving technological and economic efficiency? a. State of technology b. Lack of information c. Distribution of income d. Market competitionarrow_forwardBased upon those notions of self-interest and public interest and the bringing of both into harmony, according to Adam Smith, how would a market economy accomplish that harmony about which he describes? What is government's place in that market economy?arrow_forward
- Macroeconomics is a study of economics that deals with which 4 major factors: A) Firm, government, free-market, and regulation. B) Household, firm, government, and the external sector. C) Household, firm, government, and demand-supply. D) Household, firm, and government only.arrow_forwardKarl Marx offers the most critical view of modern private property and free market institutions. Marx claims that free-market capitalism necessarily produces: Extremes of inefficiencyExtremes of efficiencyExtremes of equality Extremes of inequalityarrow_forwardWhich of the following statements is FALSE regarding common goods? Multiple Choice Water is an example of a common good. Similar to most public goods, the marginal cost of common goods is ALWAYS zero. Common goods are defined in economics as goods which are rival and non-excludable. Fish stocks in international waters is an example of a common good.arrow_forward
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