Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 30, Problem 7QP
To determine
Reason why market does not provide national defense when people demand it.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
What do you see as the biggest flaw in using benefit-cost analysis to guide public policy?
Is market failure either necessary or sufficient for government intervention?
What is an externality? Please give an example of the negative externality. For the flu shot, how does the positive externality shift the marginal benefit curve (the demand curve)? We know that there will be a deadweight loss if consumers purchase the underlying good, which generates positive externality at the market price. Is there a deadweight loss in this case? Why or Why not?
Chapter 30 Solutions
Economics (MindTap Course List)
Ch. 30.1 - Prob. 1STCh. 30.1 - Prob. 2STCh. 30.2 - Prob. 1STCh. 30.2 - Prob. 2STCh. 30.2 - Prob. 3STCh. 30.2 - Prob. 4STCh. 30.3 - Prob. 1STCh. 30.3 - Prob. 2STCh. 30.3 - Prob. 3STCh. 30.4 - Prob. 1ST
Ch. 30.4 - Prob. 2STCh. 30.4 - Prob. 3STCh. 30.5 - Prob. 1STCh. 30.5 - Prob. 2STCh. 30.5 - Prob. 3STCh. 30 - Prob. 1QPCh. 30 - Prob. 2QPCh. 30 - Prob. 3QPCh. 30 - Prob. 4QPCh. 30 - Prob. 5QPCh. 30 - Prob. 6QPCh. 30 - Prob. 7QPCh. 30 - Prob. 8QPCh. 30 - Prob. 9QPCh. 30 - Prob. 10QPCh. 30 - Prob. 11QPCh. 30 - Prob. 12QPCh. 30 - Economists sometimes shock noneconomists by...Ch. 30 - Prob. 14QPCh. 30 - Prob. 15QPCh. 30 - Prob. 1WNGCh. 30 - Prob. 2WNGCh. 30 - Prob. 3WNG
Knowledge Booster
Similar questions
- Are there any circumstances under which society could exist without law?arrow_forwardThe pandemic has upended the way New Yorkers dine out: There are sidewalk tables, open streets, streeteries, and barely anyone eating indoors. Now, as the weather gets colder, there are also plastic bubbles out on sidewalks, too. A video of the dome-shaped tents on a West Village street went viral this week, prompting questions of how safe they are, not to mention just what they are. Bubbles of various sorts have shown up around the country since restaurants began to ease into this new, strange era of dining out. […] But the igloolike tents can also get costly and require strict sanitation measures, and some health experts question how safe they actually are. … the big question: Are these things safe? Along with sanitation protocols, most restaurants use flameless candles inside the bubbles in hopes of avoiding any melt-y fires (PVC is toxic when it burns). But the biggest concern is of course the reason for the bubble in the first place, COVID. Dr. Abraar Karan is an internal…arrow_forwardPut yourself in the shoes of the Egyptian Government. The country is already suffering from severe water shortages. In the future, the number of people needing water is going up drastically and the amount of water available will decrease once the dam in Ethiopia is finished. What actions does the government have available? Come up with three options. Discuss the cost/benefits or pros/cons of each option. Evaluate the options and determine which one would be the best for the people of Egypt and their security.arrow_forward
- Markets work; government does not. Explain your answer.arrow_forwardThe National Flood Insurance Program (NFIP) provides flood insurance for homeowners and small businesses. The policyholders pay just 10% of the actual cost of flood insurance. When such highly-subsidized insurance is available, people are more likely to build homes in areas subject to sever flood damage. What is this behavior is called? a. Negative externality b. Positive externality c. Adverse selection d. Moral hazardarrow_forwardHow can government prevent market failure?arrow_forward
- Mr. Saeed Ahmed loves watching sports channel on his local public TV station, but he never sends any money to support the station during its fund-raising drives. What name do economists have for people like Mr. Saeed Ahmed? b. How can the government solve the problem caused by people like Mr. Saeed Ahmed? c. Can you think of ways the private market can solve this problem? How does the existence of cable TV alter the situation?arrow_forwardIs education a public good? Does education have external benefits? If so, what are some of those public benefits? In your opinion are the external benefits large or small? Why? What should government do to promote the efficient provision of products that have external benefits? If you think that government should put more resources into education, what might be some of the opportunity costs of that decision? How would an economist determine the right amount of government support for education?arrow_forwardAs the Great Depression began in 1929, and millions of Americans found themselves in a terrible economic position, President Herbert Hoover was reluctant to involve the government in directly helping people. This decision helped lead to his loss in the presidential election of 1932. Put yourself in Hoover’s shoes—what reasons would he have for being opposed to large-scale government involvement in the economic lives of Americans? What reasons could be given for the government getting involved?arrow_forward
- Choose a program or service that is provided by government. Try to choose a unique example that has personal interest for you. 1. Tell us what program or service you chose. 2. Does your example fit the definition of a rival good? Explain why or why not. 3. Does your example fit the definition of an excludable good? Explain why or why not.arrow_forwardAnalyse the role of market failure as a justification for government intervention.arrow_forwardPlace an “M” beside the items in the following list that describe a moral hazard problem and an “A” beside those that describe an adverse selection problem a. A person with a terminal illness buys several life insurance policies through the mail. b. A person drives carelessly because she has automobile insurance. c. A person who intends to torch his warehouse takes out a large fire insurance policy. d. A professional athlete who has a guaranteed contract fails to stay in shape during the off season. e. A woman who anticipates having a large family takes a job with a firm that offers exceptional child care benefits.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning