Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 8PA
To determine
Situations that explain efficiency and equity.
Expert Solution & Answer
Trending nowThis is a popular solution!
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 Microeconomics
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. 11PACh. 1 - Prob. 12PA
Knowledge Booster
Similar questions
- In 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_forwardh. A $1,200 stimulus check sent to households by the government as COVID reliefarrow_forward
- 50. 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_forwardThe 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_forward
- 1. The film elaborates and mocks ideological justifications for capitalism. What were some of the claims for why capitalism is so good?arrow_forwardWhich of the following is not a way to the us government intervenes in the economy a. Minimum wage b. Social security c. Unemployment insurance d. telling businesses how much quantity to make e. the affordable care act(aka Obama care) f. Not allowing companies to merge or buy another companyarrow_forward5. According to the documentary on Athenian Democracy, the dark side of democracy was that the society was also built on A. low wages for workers B. a lack of a judicial system C. slavery D. cruelty to animals and childrenarrow_forward
- 1. HOW DO INSTITUTIONAL AND GOVERNMENT MARKETS DIFFER FROM BUSINESS MARKETS?arrow_forwardChoices to each part attached:arrow_forwardEconomists have stated that an economy has plunged to a market failure with an uptick in natural gas prices and production which has led to underperformance in other areas of the economy. 1. Identify the type of market failure being discussed in the article and discuss why market failure occurs in this scenario. 2. Suggest a relevant government policy that would yield an efficient outcome and carefully explain the process through which the implementation of the government policy will lead to the optimal outcome. 3. How will the imposition of the chosen government policy impact consumer? surplus, producer surplus and total surplus in this scenario?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning