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
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Question
Chapter ST4, Problem 4CQ
To determine
Role of government to solve the potential problems with the market.
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explain why neglecting opportunity cost in policy-making can cause governments to make poor decisions.
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Chapter ST4 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
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- The government should provide such goods as health care, education, and highways because it can provide them for free." Is this statement true or false? Explain your answerarrow_forwardCritically evaluate the below statement. "Policy makers have their individual desires (utility maximisation behavior) but they have to make policy decisions to improve social welfare in the society."arrow_forwardWhich 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 economiesarrow_forward
- Which of the following statements is inaccurate? Multiple Choice There is substantial agreement about how and when markets fail. There is substantial agreement about whether government improves market outcomes. Voters are quick to blame government meddling for many economic woes. Ideally, the market mechanism will lead an economy to the optimal mix of output.arrow_forwardThrough economic reasoning, explain the interrelationship with markets and government, while keeping the following statements in mind: Markets are useful, efficient and flexible institutions through which society can allocate its resources. Markets often produce unwanted results, such as pollution, lack of health care and poverty. Government can play a useful role to remedy the problem of unwanted results created by markets. Thank you so much for answering my question :) I appreciate the time and effort! I hope you have a good rest of the day/night!arrow_forwardA dangerous habit among those who own cell phones is driving while talking or texting. Although a great deal has been done to inform drivers of the risks of doing multiple tasks while driving, this informational campaign has been ineffective in the face of increased ownership of cell phones. If you were a policymaker, what types of negative incentives would you suggest to discourage individuals from driving and talking or texting at the same time?arrow_forward
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