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Macroeconomics 14th Edition by William Baumol,Alan Blinder,John Solow
النسخة 14الرقم المعياري الدولي: 978-1337794985Macroeconomics 14th Edition by William Baumol,Alan Blinder,John Solow
النسخة 14الرقم المعياري الدولي: 978-1337794985 تمرين 2
"The government should provide such goods as health care, education, and highways because it can provide them for free." Is this statement true or false? Explain your answer.
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The statement is false.
In reality there is no such thing called free as resources are scarce and human demands are unlimited. A scarce resource has various uses and hence have opportunity cost. Construction of infrastructure like healthcare, education and highways needs the employment of scarce resources like land, labor, capital, entrepreneur which otherwise would have been used for the construction of other productive goods for satisfying other demands. A land used for construction of school can also be used for construction of shopping mall, parking plaza or simply for farming agricultural produce. Construction of school means sacrificing other all other uses of the available scarce land.
In reality there is no such thing called free as resources are scarce and human demands are unlimited. A scarce resource has various uses and hence have opportunity cost. Construction of infrastructure like healthcare, education and highways needs the employment of scarce resources like land, labor, capital, entrepreneur which otherwise would have been used for the construction of other productive goods for satisfying other demands. A land used for construction of school can also be used for construction of shopping mall, parking plaza or simply for farming agricultural produce. Construction of school means sacrificing other all other uses of the available scarce land.
Macroeconomics 14th Edition by William Baumol,Alan Blinder,John Solow
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