Economics: Private and Public Choice (MindTap Course List)
15th Edition
ISBN: 9781285453538
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 6CQ
To determine
Explain the reason for protection which is important to the efficient operation of an economy.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Examine the different economic systems in a country, using examples.
Identify and define the two branches of economics.
Which of the following refers to an economy which most economic decisions are made by the government and not by buyers and sellers who may be individuals or firms?
Financial Capital markets
Free markets
Command economies
Market-Oriented economies
Chapter 5 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- Are there any circumstances under which society could exist without law?arrow_forwardAccording 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.arrow_forwardPlease use the graph to answer the given questions. Assume the people act rationally. Which of the statements best describes a situation represented by point A? Look at the image to solve for this Jeff agrees to lend money to his brother, who plans to use the funds to open a shoe store. Wayne projects that if he takes out a loan to open another gym franchise, he will earn a lower return than the interest rate he would have to pay, so he decides against it. Janine predicts that, if she borrows to expand operations, she will earn a rate of profit higher than the interest rate of the loan. So, she decides to take out the loan. Carly decides against purchasing a corporate bond because she has another investment opportunity that returns 17%. Given the market conditions, what will be the prevailing interest rate? 18% 2% 17% 10% 6% Given the market conditions, how much will be available in loanable funds? $90 billion $50 billion $30 billion $70…arrow_forward
- Don't use Ai.arrow_forwardWhy do we formulate policy?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_forward
- What makes applied economic as an instrument and decision-making of an individual and governmentarrow_forwardWhat roles do planning systems play?arrow_forwardInterest rates rise on your savings account at your bank, and you decide to save 5% more from your paycheck to take advantage of the increased rates. Which of the six core principles of the economic way of thinking does this decision illustrate? People Make Choices The Consequences of Choices Lie in the Futurearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
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
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher: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
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
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning