Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 14CQ
To determine
Explain when the government intervention is considered economically efficient and when it is not.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
In the presence of market failure ,the argument for government intervention is only compelling but not always beneficial. True or false, and explain
As the Great Depression began in 1929, and millions of Americans found themselves in a terrible economic position, President Herbert Hoover was reluctant to involve the government in directly helping people. This decision helped lead to his loss in the presidential election of 1932. Put yourself in Hoover’s shoes—what reasons would he have for being opposed to large-scale government involvement in the economic lives of Americans? What reasons could be given for the government getting involved?
What does it mean that ideally government should act in such a manner as to “bring about the outcome that would naturally occur in the absence of transaction costs), what does this have to do with who should receive property rights from government?
Chapter 5 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- Is market failure either necessary or sufficient for government intervention?arrow_forwardKnowledge creates positive externality; therefore, governments should intervene in the education sector. What is the intervention action of governments for efficiency to gain from external benefits? Please explain each of these interventions with a clear example for each.arrow_forwardWhat challenges and opportunities would arise from higher and lower degrees of government intervention?arrow_forward
- There are never unintended consequences of government intervention to address market failures. true or falsearrow_forwardConfucius is a "laissez-faire" thinker--this implies an absolute--that government must never regulate any element of business. 1)True 2)Falsearrow_forwardWhy does government intervention become necessary in the situation of market failure?arrow_forward
- For which of the following problems can well-designed public policy enhance economic efficiency? both externalities and market power externalities, but not market power market power, but not externalities neither externalities nor market powerarrow_forwardQuestion 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.arrow_forwardThe U.S. Constitution enumerates the powers given to the federal government, and the Supremacy Clause provides that state laws cannot conflict with federal laws in these areas. True or False?arrow_forward
- How do government failures provide rationale and justification for public policy?arrow_forwardOne reason we need government, even in a market economy, is that: a. The invisible hand, while powerful, is not perfect b. The invisible hand seldom leads to an efficient allocation of resources in any market c. Property rights become too entrenched in the absence of government d. There are insufficient quantities of externalities in the absence of governmentarrow_forwardwhat is one function of the government other than correcting externalities?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning