Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 14, Problem 15SQ
To determine
The achievement of efficiency in private sector.
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Question 15
All of the following except which one explain why governments may fail to enhance economic efficiency?
a
There is limited information relating to the social benefits and costs.
b
It is difficult measuring social benefits and costs.
c
It is easier to eliminate programs than to add programs.
d
Efficient programs may be politically untenable.
What is a market-failure rationale for the government investing in transportation and infrastructure, for example roads, highways, bridges and tunnels?
a. Government policy acts to correct for the under-provision of private goods by the private, unregulated market.
b. Government policy acts to correct for the over-provision of private goods by the private, unregulated market.
c. Government policy acts to correct for the over-provision of public goods by the private, unregulated market.
d. Government policy acts to correct for the under-provision of public goods by the private, unregulated market.
What is a market-failure rationale for the government investing in education and training programs?
a. Education likelyresults in a negative externality in production, so government investment corrects for the under-provision by private, unregulated markets.
b. Education likely results in a positive externality in consumption, so government investment corrects for the under-provision by private, unregulated markets.
c. Education likely results in a positive externality in production, so government investment corrects for the over-provision by private, unregulated markets.
d. Education likely results in a negative externality in consumption, so government investment corrects for the over-provision by private, unregulated markets.
Chapter 14 Solutions
Micro Economics For Today
Ch. 14.2 - Prob. 1.1GECh. 14.2 - Prob. 1.2GECh. 14.2 - Prob. 1.3GECh. 14.2 - Prob. 2.1GECh. 14.2 - Prob. 2.2GECh. 14.2 - Prob. 2.3GECh. 14.2 - Prob. 2.4GECh. 14 - Prob. 1SQPCh. 14 - Prob. 2SQPCh. 14 - Prob. 3SQP
Ch. 14 - Prob. 4SQPCh. 14 - Prob. 5SQPCh. 14 - Prob. 6SQPCh. 14 - Prob. 7SQPCh. 14 - California once proposed legislation that would...Ch. 14 - Prob. 9SQPCh. 14 - Prob. 10SQPCh. 14 - Prob. 11SQPCh. 14 - Prob. 12SQPCh. 14 - Prob. 13SQPCh. 14 - Prob. 14SQPCh. 14 - Prob. 15SQPCh. 14 - Prob. 16SQPCh. 14 - Prob. 1SQCh. 14 - Prob. 2SQCh. 14 - Prob. 3SQCh. 14 - Prob. 4SQCh. 14 - The perfectly competitive profit-maximizing firm...Ch. 14 - Prob. 6SQCh. 14 - Prob. 7SQCh. 14 - Prob. 8SQCh. 14 - Prob. 9SQCh. 14 - Prob. 10SQCh. 14 - Prob. 11SQCh. 14 - Prob. 12SQCh. 14 - Prob. 13SQCh. 14 - Prob. 14SQCh. 14 - Prob. 15SQCh. 14 - Prob. 16SQCh. 14 - Prob. 17SQCh. 14 - Prob. 18SQCh. 14 - Prob. 19SQCh. 14 - Prob. 20SQ
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- Q3. The following table shows the marginal benefits of a pure public good that can be enjoyed by four people in a community, Athirah, Dewi, Chin, and John. Number of Public Good Marginal Benefit: 1 2 3 4 Athirah 175 150 125 100 Dewi 150 125 100 75 Chin 125 100 75 50 John 100 75 50 25 What is the total cost of the public good that needs to be financed if the marginal social cost is RM350? Explain your answer.arrow_forwardWhich of the following is NOT a feature of a public good? a. Non-excludability b. Non-rivalry c. Always provided by the free market d. Generally provided by the governmentarrow_forwardAssuming the government pays higher cost of production by paying wages that are higher than the private sector rates, analyse the effect of the change in the costs of producing public good caused by government inefficiency?arrow_forward
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