Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 18, Problem 2QP
To determine
Explain Buchanan’s statement.
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Which of the following countries has a unitary system of government?
Brazil
Australia
Canada
England
Germany
Every modern society has a government of some sort, and every society has an economy as well. But how do the government and the economy intersect in society? That debate is prevalent in the United States today: how much influence should the government have on businesses, workers, and the economy? Some people say that the government should not have much influence on the economy—only the minimum necessary to ensure that society functions well. Others say that the government should ensure fair and equitable distribution of resources for all companies and workers. Still others say that the role of the government falls somewhere between those two extremes.
You can start thinking about the intersection of government and the economy in the United States by considering your everyday life. From the time you get up in the morning until you go to bed at night, what contacts do you have with the government? Which of those contacts are related to the economy?
Economist Friedrich Hayek argued that when knowledge is decentralized and disbursed among many people.
a) the greater the share of knowledge the heads of firms and governments can and must know to be successful.
b)the smaller the share of knowledge the heads of firms and governments can know to be successful.
c) the greater the need for centralized, top-down planning within large firms and governments.
d) the greater the need for firms and governements to avoid markets.
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- Different Schools of thought propose theories to explain government failure. Based on public choice theory, briefly explain the foundations of government failure.arrow_forwardWhy might citizens interested in maximizing economic efficiency be happy to invest their government with the right to coerce them in at least some situations?arrow_forwardEconomist Friedrich Hayek argued that when knowledge is decentralized and disbursed among many people: a. the greatr the share of knowledge the heads of firms and government can and must know to be successful b. the smaller the share of knowledge the heads of firms and government can know to be successful c. the greater the need for centralized, top-down planning within large firms and goverments d. the greater the need for firms and governments to avoid markets.arrow_forward
- what is the appropriate balance between government and freedom in the American democracy? Do you think government should be more active, providing assistance to achieve a common good for all citizens; or, should government be more limited, involved only to the extent that it protects individual rights and liberties?" Explain your answer.arrow_forwardwhat would be a modern example of Abstract liberalism?arrow_forwardThe type of nondemocratic rule where democratic institutions that rest on the rule of law are weakly institutionalized and poorly respected, and where there is rule by an elected leadership through procedures of questionable democratic legitimacy is called... Group of answer choices Illiberal regimes Theocracy Sultanistic authoritarianismarrow_forward
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