Do the costs of social regulation outweigh the benefits?
What will be an ideal response?
Whether the costs of social regulation outweigh the benefits is difficult to determine because it is easier to measure the costs than the benefits, especially when benefits result only after substantial passage of time. It is not easy, for example, to measure the benefits of less discrimination in the workplace, the value of a cleaner environment, or the production of safer products. The discussion of costs and benefits also needs to be considered on a case-by-case or industry-by-industry basis. The question is not one of whether or not to have social regulation, but how much regulation is needed. That issue often means that ideology about the proper size and scope of government drives the debate more than the costs and benefits of a decision.
You might also like to view...
The market for used cars is shown in the above figure. Neither buyers nor sellers can tell whether any given car is a lemon. Ten percent (10%) of all cars are lemons. Which of the following statements is TRUE?
A) All of the cars will be sold at $1,900. B) No cars will be sold. C) Only lemons will be sold at $1,600. D) Only lemons will be sold at $1,000.
Which of the following would most likely increase the price of chicken, a normal good?
a. a reduction in the price of grains used to produce chicken feed b. a reduction in the price of beef, a substitute for chicken c. unusually hot weather that kills millions of chickens before they are ready for market d. a decrease in consumer income
Comment on the statement: “Americans must be the healthiest people on earth because they spend the most on health care and have the best health care system.”
What will be an ideal response?
Issuing coupons, waiting in line, and catering to favored customers are all methods of
A. nonprice rationing. B. income distribution. C. unbiased favoritism. D. exploiting wealth.