Why are healthcare and education not public goods and why do governments play a large role in the markets for these services?
What will be an ideal response?
Healthcare and education are not public goods because they are rival and excludable. But governments play a major role in the market for these services because a majority of voters want these goods provided to people regardless of the people's ability to pay for them. Because of this view, public choices are used to determine the quantity of healthcare and education services provided.
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Suppose a government is considering imposing either a tariff or a quota on imported grain, and either policy will result in exactly 750 tons of grain being imported. How do these policies differ?
A. The price of grain under the quota will be higher than the price under the tariff. B. The price of grain under the tariff will be higher than the price under the quota. C. Domestic production will be higher with the quota than with the tariff. D. The quota will generate revenue for the firms that hold import licenses, while the tariff will generate revenue for the government.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Because of a bank merger, Ms. Davis lost her position as Vice President and had to seek work with other banks. Ms. Davis has the skills necessary to find a new job, thus she is best considered as
A) frictionally unemployed. B) cyclically unemployed. C) structurally unemployed. D) naturally unemployed.
In any year, nominal GDP divided by the GDP chain price index times 100 equals real GDP
a. True b. False Indicate whether the statement is true or false