Macroeconomics Private and Public Choice

Business

Quiz 5 :

Difficult Cases for the Market, and the Role of Government

Quiz 5 :

Difficult Cases for the Market, and the Role of Government

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There is substantial agreement among scholars that at least two functions of government are legitimate. These two functions are the
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A

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Economic efficiency requires that
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D

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Which of the following is the best example of a public good?
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C

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Which of the following is the most fundamental function of government?
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If an economic action generates more costs than benefits, the action
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Government provision of goods and services that cannot easily be provided through markets because it is difficult to establish a one-to-one link between payment and consumption of the good is referred to as the
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Competitive markets generally give consumers and producers correct incentives when
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Markets may have difficulty providing the proper quantity of a public good because
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Which of the following correctly describes the external benefit resulting from an individual's purchase of a winter flu shot?
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Markets fail to allocate resources efficiently when
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Which of the following best explains why making automobiles completely safe is not efficient?
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The idea that an action should be undertaken if and only if the benefits exceed the costs is known as the concept of
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When economists say that an activity meets the criterion for economic efficiency, they mean
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Which of the following is a source of information that helps consumers acquire information about the quality of a good or service?
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From the viewpoint of economic efficiency, when competitive forces in an industry are weak, market allocation will often lead to
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Suppose paper pulp mills are permitted to emit harmful pollutants, free of charge, into the air. How will the price and output of paper in a competitive market compare with their values under conditions of ideal economic efficiency?
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The maintenance of a framework of security and order through the establishment and enforcement of rules under which people can interact peacefully with one another and be secure in their person and property is known as the
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When production of a good generates external costs, the
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Economic efficiency indicates that
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Because the benefits derived from an activity decline as it is expanded, it is generally
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