Explain whether each of the following governmentactivities is motivated by a concern about equality ora concern about efficiency. In the case of efficiency,discuss the type of market failure involved.a. regulating cable TV pricesb. providing some poor people with vouchers thatcan be used to buy foodc. prohibiting smoking in public places d. breaking up Standard Oil (which once owned90 percent of all U.S. oil refineries) into severalsmaller companiese. imposing higher personal income tax rates onpeople with higher incomesf. enacting laws against driving while intoxicated
Explain whether each of the following governmentactivities is motivated by a concern about equality ora concern about efficiency. In the case of efficiency,discuss the type of market failure involved.a. regulating cable TV pricesb. providing some poor people with vouchers thatcan be used to buy foodc. prohibiting smoking in public places d. breaking up Standard Oil (which once owned90 percent of all U.S. oil refineries) into severalsmaller companiese. imposing higher personal income tax rates onpeople with higher incomesf. enacting laws against driving while intoxicated
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Explain whether each of the following government
activities is motivated by a concern about equality or
a concern about efficiency. In the case of efficiency,
discuss the type of market failure involved.
a. regulating cable TV prices
b. providing some poor people with vouchers that
can be used to buy food
c. prohibiting smoking in public places d. breaking up Standard Oil (which once owned
90 percent of all U.S. oil refineries) into several
smaller companies
e. imposing higher personal income tax rates on
people with higher incomes
f. enacting laws against driving while intoxicated
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