Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
Question
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Chapter 3, Problem 1QAP

(a)

To determine

Problems relating with government intervention.

(b)

To determine

Further effect of central planner’s interference on family choices.

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Local government bans on plastic grocery bags due to environmental concerns have led to increased emergency room visits and deaths related to harmful bacteria such as E. coli, as many people do not wash their bags after each use.   Which of the following best characterizes the statement?   The statement demonstrates that even when government policies are enacted with good intentions, they do not always guarantee good outcomes due to unintended consequences and secondary effects.   The statement demonstrates that normative economics is often confused with positive economics.   The statement is an example of the fallacy of composition because all foods do not contain harmful bacteria.   The statement shows that all environmental regulations have benefits that exceed the costs.
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