A B C AS2 ASı AS1 AS2 AS2 AS1 AS1 ADAD2 ADA AD2 AD2 AD1 E F G H i MS: MS2 MS1 MS2 MS1 MS2 • MS, MS2 „MD2 -MD2 -MD3 MD: MD3 MD1 QMD MD2 CMD2 MD1 " QMD "QMD QuD The government has decided to print money in order to pay off it's long term debt. The graph that shows the good market diagram in the short run after the money is printed is represented by the graph with the letter above it.

A B C AS2 ASı AS1 AS2 AS2 AS1 AS1 ADAD2 ADA AD2 AD2 AD1 E F G H i MS: MS2 MS1 MS2 MS1 MS2 • MS, MS2 „MD2 -MD2 -MD3 MD: MD3 MD1 QMD MD2 CMD2 MD1 " QMD "QMD QuD The government has decided to print money in order to pay off it's long term debt. The graph that shows the good market diagram in the short run after the money is printed is represented by the graph with the letter above it.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Describe two activities by the government that can cause allocative inefficiency.
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Governments generally want people to get immunised against highly contagious viruses suchas COVID-19. Nonetheless many people refuse to take the vaccination jab, because theyoverestimate the likelihood of side effects, or because they are complacent about gettinginfected or the severity of symptoms they might experience. They also might not care orunderstand that their immunity protects others. Use the theories of market failure andgovernment intervention to analyse the motives of government, the anti-vax phenomenonand their consequences. What, if anything should government do to make more people getvaccinated? What would be the problems with such interventions?
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