Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 1, Problem 7PA
To determine
The given situation explain equity or efficiency?
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Students have asked these similar questions
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 oil refineries) into
several smaller companies
e. imposing higher personal income tax rates
on people with higher incomes
f. instituting laws against driving while
intoxicated
Decide whether each of the following descriptions most closely corresponds to being part of a command system, a market system, or a laissez-faire system. a. A woman who wants to start a flower shop finds she cannot do so unless the central government has already decided to allow a flower shop in her area. b. Shops stock and sell the goods their customers want but the government levies a sales tax on each transaction in order to fund elementary schools, public libraries, and welfare programs for the poor. c. The only taxes levied by the government are to pay for national defense, law enforcement, and a legal system designed to enforce contracts between private citizens.
Which of the following is the type of government where most power belongs to states or provinces and the national government is weak?
A. An association
B. A confederation
C. A league
D. An Alliance
Chapter 1 Solutions
Principles of Economics (MindTap Course List)
Ch. 1.1 - Prob. 1QQCh. 1.2 - Prob. 2QQCh. 1.3 - Prob. 3QQCh. 1 - Prob. 1CQQCh. 1 - Prob. 2CQQCh. 1 - Prob. 3CQQCh. 1 - Prob. 4CQQCh. 1 - Prob. 5CQQCh. 1 - Prob. 6CQQCh. 1 - Prob. 1QR
Ch. 1 - Prob. 2QRCh. 1 - Prob. 3QRCh. 1 - Prob. 4QRCh. 1 - Prob. 5QRCh. 1 - Prob. 6QRCh. 1 - Prob. 7QRCh. 1 - Prob. 8QRCh. 1 - Prob. 9QRCh. 1 - Prob. 10QRCh. 1 - Prob. 1PACh. 1 - Prob. 2PACh. 1 - Prob. 3PACh. 1 - Prob. 4PACh. 1 - Prob. 5PACh. 1 - Prob. 6PACh. 1 - Prob. 7PACh. 1 - Prob. 8PACh. 1 - Prob. 9PACh. 1 - Prob. 10PACh. 1 - Prob. 11PA
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- Discuss each of the following statements from the standpoints of equity and efficiency. a. “Everyone in society should be guaranteed the best health care possible.” b. “When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”arrow_forwardIn general, what are some of the tactics the government uses to correct market failure? List 3 and provide a brief explanation of the opportunity costs involved in correcting these failures.arrow_forwardexplain whether there has been a market failure, what type of failure, and what measures might solve it, You should consider: the advantages and disadvantages of any solution whether doing nothing might be the best solution the concept of efficiency. A health insurance provider finds that the health of its customers is much worse than the average health of the population anything else you think important.arrow_forward
- Which statement best describes economic freedom? Sara would like a new green shirt, but she is only permitted to buy red shirts in her town. Sally wants to buy a new car, so she goes to a dealership to make the purchase. Sam needs sugar to bake a cake, but he has already used the set amount of sugar that he was given by the government. Tom would like to purchase a new book, but the one he wants has been banned by the government.arrow_forward50. Which of the following is true of a free market system? a. In a free market system, all economic decisions are made without government intervention b. In a free market system, central government planning determines what goods and services satisfy citizens' needs c. It is also called modified capitalism d. In a free market, a government regulates businessarrow_forwardWhat are the four roles of government? Give an example of each role.arrow_forward
- The AstraZeneca vaccine is considered to be what type of good? * a.Private Good b.Demerit Good c.Public good d.Merit Goodarrow_forwardQuestion 22 The benefit principle states that_ a. people who benefit from the rule of law should pay taxes b. people who benefit from Social Security should voter for it d. people who benefit from a government activity should be those who pay for itarrow_forwardIn a market system, provide an example for when government can enhance or harm any of the processes involved in terms of what should be produced, how it should be produced, and for whom.arrow_forward
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