Macroeconomics (Mcgraw-hill Series in Economics)
Macroeconomics (Mcgraw-hill Series in Economics)
10th Edition
ISBN: 9781259663048
Author: David C Colander
Publisher: McGraw-Hill Education
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Chapter 3, Problem 1QAP

(a)

To determine

Problems relating with government intervention.

(b)

To determine

Further effect of central planner’s interference on family choices.

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Local government bans on plastic grocery bags due to environmental concerns have led to increased emergency room visits and deaths related to harmful bacteria such as E. coli, as many people do not wash their bags after each use.   Which of the following best characterizes the statement?   The statement demonstrates that even when government policies are enacted with good intentions, they do not always guarantee good outcomes due to unintended consequences and secondary effects.   The statement demonstrates that normative economics is often confused with positive economics.   The statement is an example of the fallacy of composition because all foods do not contain harmful bacteria.   The statement shows that all environmental regulations have benefits that exceed the costs.
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Suppose that Jacques, an economist from a university in Arizona, and Kyoko, an economist from a school of industrial relations, are arguing over government intervention. The following dialogue shows an excerpt from their debate: Kyoko: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate. Jacques: I feel that government involvement in the economy should be reduced because government programs cause more harm than good. Kyoko: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate. The disagreement between these economists is most likely due to Despite their differences, with which proposition are two economis differences in values differences between perception versus reality O Central banks should focus more on maintaining low une differences in scientific judgments O Business managers can raise profit more easily by reduc O Employers should not be…
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