Which one of the following is a major difference between market and collective action through government?
a. Individuals are motivated by personal interests when making market choices, but they will be motivated primarily by the public interest when making collective choices.
b. Competitive behavior is present when decisions are made in the marketplace, but competition is absent when choices are made collectively.
c. Scarcity constrains output when decisions are made in the market sector, but scarcity is absent when goods are provided by the government.
d. In the market sector, there is generally a one-to-one link between payment and consumption; this link is often absent in the government sector.
D
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One rationale for government involvement in health care markets is that government involvement is necessary to prevent the spread of contagious diseases, which can be a type of externality
Which of the following is not an example of a public health externality? a. The provision of vaccinations against communicable diseases. b. The provision of clean drinking water to prevent the spread of water-borne diseases. c. The elimination of pools of standing water to help prevent the spread of malaria. d. The provision of drugs to help control cholesterol, a primary factor in heart disease.
When there is an Equilibrium (or a Nash Equilibrium), we expect that:
a. once the firms get there, no one will change their strategy. b. firms will tend to select a randomized strategy. c. neither firm will care what it does. d. this is always a dominated strategy.
If the dollars per peso exchange rate fell,
a. few firms would want to relocate to Mexico b. the demand for pesos would fall c. more Americans would travel to Mexico d. Americans would buy fewer Mexican goods e. the demand for pesos curve would shift inward
If rent ceiling is set above the equilibrium rent. . .
What will be an ideal response?