An analysis of market failure and government failure indicates
a. government decision making is always preferable to using markets.
b. market decision making is always preferable to public-sector action.
c. government action is necessary whenever market failure occurs.
d. both the market and the government may fail to meet conditions of economic efficiency; in each individual case, the choice of market or public-sector action requires careful evaluation.
D
You might also like to view...
Refer to Figure 16-5. Consider the following two pricing strategies:
a. a fixed fee and a per-unit price equal to the monopoly price b. a fixed fee and a per-unit price equal to the competitive price The firm represented in the diagram earns a higher profit under strategy ________ and deadweight loss is eliminated under ________. A) a; b B) b; b C) a; neither strategy D) b; neither strategy
For an individual concerned with whether or not the Social Security system provides a good rate of return on the money paid into the system, she only needs to look at the return on investment for previous beneficiaries
a. True b. False
Voting as a mechanism for public choice is associated with a number of problems including
A. majority rule voting can lead to contradictory and inconsistent results. B. disengaged voters with very little incentive to inform themselves of the issues. C. logrolling. D. all of the above.
The idea that labor productivity depends on the degree of labor specialization is attributed to
a. Hiro Yakamaya b. Stanley Jevons c. J. S. Mill d. Adam Smith e. Robinson Crusoe