Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 2, Problem 9CQ
To determine
Explain the market-directed economy authorize.
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Microeconomics: Private and Public Choice (MindTap Course List)
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- Why is the right of private property an essential characteristic of a market system?arrow_forwardExplain three ways economist define market efficient. How does efficiency relates to the economist's definition of market failure? What market structure is least likely to represent a failed market?arrow_forwardWhat is traditional media and new media? What are their differences?arrow_forward
- What are externalities; and how the government can fix itarrow_forwardPositive externality No externality Negative externality Answer Bank The U.S. government decides to Lyle and Julia from The hing company icago house all of its nuclear waste to Los Angeles with their newborn infant who cries the entire way illegally hunts the Coelacanth, material at Cactus Cliff, WY. As a critically endangered fish that is close to extinction with all nuclear waste, there is no fail-safe protection method Jane raises bees to produce honey Ronald, the first in his family to attend for her business, but her bees also college, graduates from medical school pollinate many flowers in the neighborhood where she lives. and decides to return home to work as a doctor in his old neighborhood.arrow_forwardAdam Smith’s theory of the invisible hand is often used to justify a hands-off approach to market activity. Can you give an example where government intervention in a market led to an inefficient outcome? How about an example where government intervention improved the outcome?arrow_forward
- What are the two types of market failure and how are they corrected? Why doesn't the market self- correct market failures?arrow_forwardIn 50 words.... Please Give one or two examples in the marketplace that describes the principles of the free market and competition.arrow_forwardU saw the news, Exxon Mobile Corporation has discovered a large new oil reserve in Montana. If market are efficient, what will you do to profit from Exxon discovery?arrow_forward
- What is social responsibility? Can the government compel businesses in our country to abide by this principle? Elaborate your answer.arrow_forwardThere are four consumers willing to pay the amounts for following haircuts:Gloria:$35 Jay:$10 Claire:$40 Phil:$25.There are four haircutting businesses with the following cost:FirmA:$15FirmB:$30FirmC:$20FirmD:$10.Each firm has the capacity to produce only one haircut.To achieve efficiency,how many haircuts should be given?Which businesses should cut hair and which consumers should have their hair cut?How large the maimum total surplus?arrow_forwardExternality is a problem that create market failure. How the externalities can be internalized to improve market efficiency?arrow_forward
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