The role of Government coerce in maximizing economic efficiency.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 5, Problem 1DQ

To determine

The role of Government coerce in maximizing economic efficiency.

Expert Solution & Answer

Explanation of Solution

When the government is allowed to coerce in the economy during some situations, it will help the economy to maximize the economic efficiency. The market system has the inherent problem for market failure. The market failure can be handled by the introduction of the public goods which will enforce the positive externalities.

The government can easily identify the unethical practices in the economy such as fraud and extortion etc. when the government is invested with the right to coerce; it can correct the unethical practices. It will help to reduce the risks associated with markets. Thus, investing the government with the right to coerce in the economy will help to maximize the economic efficiency.

Economics Concept Introduction

Concept introduction:

Economic efficiency: The economic efficiency is a situation in which all the economic resources are being efficiently utilized and the resource wastage is minimized.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Suppose that a paper mill "feeds" a downstream box mill. For the downstream mill, the marginal profitability of producing boxes declines with volume. For example, the first unit of boxes increases earnings by $10, the second by $9, the third by $8, and so on, until the tenth unit increases profit by just $1. The cost the upstream mill incurs for producing enough paper (one "unit" of paper) to make one unit of boxes is $3.50. Assume the two mills operate as separate profit centers, and the paper mill sets the price of paper. It follows that the marginal profitability of boxes represents the highest price that the box division would be willing to pay the paper division for boxes.. Furthermore, assume that fixed costs are $0 for the paper mill. The following table summarizes the quantity, total revenue, and marginal costs from the perspective of the paper mill for selling paper to the box mill at various prices. In the following table, fill in the marginal revenue, total cost, and total…

Planes frequently push back from the gate on time, but then wait 2 feet away from the gate until it is time to queue up for takeoff. This increases fuel consumption and increases the time that passengers must sit in a cramped plane awaiting takeoff. The following table shows the pay schedule for the flight crew. Pay Per diem Holding pay per hour Flight Attendant Captain First Officer $3 $3 $3 $20 $20 $20 Hourly wage (after push back) $38 $184 $50 Per diem pay indicates how much the flight crew earns once it checks into the airport. Holding pay indicates how much the flight crew earns after it loads the plane. Hourly wage indicates how much the flight crew earns after it pushes back from the gate and turns on the beacon. In this scenario, who does not have an incentive to push back from the gate as early as possible? Check all that apply. Captain Flight attendants Passengers First officer True or False: Allowing the airline to decide when to push back from the gate would reduce…

This Wendy’s commercial confuses the notions of appreciation and consumer surplus. Recall that consumer surplus is the difference between what a consumer is willing to pay for a good and what they actually pay for it. According to standard economic theory, consumer surplus must always be

Answer 2

Question

Chapter 5, Problem 1DQ

To determine

The role of Government coerce in maximizing economic efficiency.

Expert Solution & Answer

Explanation of Solution

When the government is allowed to coerce in the economy during some situations, it will help the economy to maximize the economic efficiency. The market system has the inherent problem for market failure. The market failure can be handled by the introduction of the public goods which will enforce the positive externalities.

The government can easily identify the unethical practices in the economy such as fraud and extortion etc. when the government is invested with the right to coerce; it can correct the unethical practices. It will help to reduce the risks associated with markets. Thus, investing the government with the right to coerce in the economy will help to maximize the economic efficiency.

Economics Concept Introduction

Concept introduction:

Economic efficiency: The economic efficiency is a situation in which all the economic resources are being efficiently utilized and the resource wastage is minimized.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 5, Problem 1DQ

To determine

The role of Government coerce in maximizing economic efficiency.

Expert Solution & Answer

Explanation of Solution

When the government is allowed to coerce in the economy during some situations, it will help the economy to maximize the economic efficiency. The market system has the inherent problem for market failure. The market failure can be handled by the introduction of the public goods which will enforce the positive externalities.

The government can easily identify the unethical practices in the economy such as fraud and extortion etc. when the government is invested with the right to coerce; it can correct the unethical practices. It will help to reduce the risks associated with markets. Thus, investing the government with the right to coerce in the economy will help to maximize the economic efficiency.

Economics Concept Introduction

Concept introduction:

Economic efficiency: The economic efficiency is a situation in which all the economic resources are being efficiently utilized and the resource wastage is minimized.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 5, Problem 1DQ

To determine

The role of Government coerce in maximizing economic efficiency.

Expert Solution & Answer

Explanation of Solution

When the government is allowed to coerce in the economy during some situations, it will help the economy to maximize the economic efficiency. The market system has the inherent problem for market failure. The market failure can be handled by the introduction of the public goods which will enforce the positive externalities.

The government can easily identify the unethical practices in the economy such as fraud and extortion etc. when the government is invested with the right to coerce; it can correct the unethical practices. It will help to reduce the risks associated with markets. Thus, investing the government with the right to coerce in the economy will help to maximize the economic efficiency.

Economics Concept Introduction

Concept introduction:

Economic efficiency: The economic efficiency is a situation in which all the economic resources are being efficiently utilized and the resource wastage is minimized.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1DQ

To determine

The role of Government coerce in maximizing economic efficiency.

Expert Solution & Answer

Explanation of Solution

When the government is allowed to coerce in the economy during some situations, it will help the economy to maximize the economic efficiency. The market system has the inherent problem for market failure. The market failure can be handled by the introduction of the public goods which will enforce the positive externalities.

The government can easily identify the unethical practices in the economy such as fraud and extortion etc. when the government is invested with the right to coerce; it can correct the unethical practices. It will help to reduce the risks associated with markets. Thus, investing the government with the right to coerce in the economy will help to maximize the economic efficiency.

Economics Concept Introduction

Concept introduction:

Economic efficiency: The economic efficiency is a situation in which all the economic resources are being efficiently utilized and the resource wastage is minimized.

Answer 6

Chapter 5, Problem 1DQ

To determine

The role of Government coerce in maximizing economic efficiency.

Expert Solution & Answer

Explanation of Solution

When the government is allowed to coerce in the economy during some situations, it will help the economy to maximize the economic efficiency. The market system has the inherent problem for market failure. The market failure can be handled by the introduction of the public goods which will enforce the positive externalities.

The government can easily identify the unethical practices in the economy such as fraud and extortion etc. when the government is invested with the right to coerce; it can correct the unethical practices. It will help to reduce the risks associated with markets. Thus, investing the government with the right to coerce in the economy will help to maximize the economic efficiency.

Economics Concept Introduction

Concept introduction:

Economic efficiency: The economic efficiency is a situation in which all the economic resources are being efficiently utilized and the resource wastage is minimized.

Answer 7

Chapter 5, Problem 1DQ

To determine

The role of Government coerce in maximizing economic efficiency.

Answer 8

Expert Solution & Answer

Explanation of Solution

When the government is allowed to coerce in the economy during some situations, it will help the economy to maximize the economic efficiency. The market system has the inherent problem for market failure. The market failure can be handled by the introduction of the public goods which will enforce the positive externalities.

The government can easily identify the unethical practices in the economy such as fraud and extortion etc. when the government is invested with the right to coerce; it can correct the unethical practices. It will help to reduce the risks associated with markets. Thus, investing the government with the right to coerce in the economy will help to maximize the economic efficiency.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Economic efficiency: The economic efficiency is a situation in which all the economic resources are being efficiently utilized and the resource wastage is minimized.

Answer 12

Ch. 5.A - Prob. 1ADQ Ch. 5.A - Prob. 2ADQ Ch. 5.A - Prob. 3ADQ Ch. 5.A - Prob. 1ARQ Ch. 5.A - Prob. 2ARQ Ch. 5.A - Prob. 3ARQ Ch. 5.A - Prob. 1AP Ch. 5.A - Prob. 2AP Ch. 5 - Prob. 1DQ Ch. 5 - Prob. 2DQ

The role of Government coerce in maximizing economic efficiency.

The role of Government coerce in maximizing economic efficiency.

Explanation of Solution

Want to see more full solutions like this?

Chapter 5 Solutions