Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 5, Problem 6CQ
To determine
Explain the reason for protection which is important to the efficient operation of an economy.
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Students have asked these similar questions
what are the three institution of government that protect individuals right in a market economy, explain their functions
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
Economist 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.
Chapter 5 Solutions
Economics: Private and Public Choice (MindTap Course List)
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- 1. Briefly discuss the main strengths and weaknesses of the three basic types of an economic system.arrow_forwardWHAT is an example of the government (laws) shaping the economy or vice versa?arrow_forwardEconomist 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.arrow_forward
- Identify and define the two branches of economics.arrow_forwardWhy couldn't an economy function without government intervention?arrow_forwardBased upon those notions of self-interest and public interest and the bringing of both into harmony, according to Adam Smith, how would a market economy accomplish that harmony about which he describes? What is government's place in that market economy?arrow_forward
- What role of government do you think is the most important from an economic perspective and why?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_forward
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