The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits.
FIGURE 16- 4
-Which of the following statements about free- market economies is false?
A) Markets tend to be impersonal and to decentralize economic power.
B) The government has a role to play in correcting market failures.
C) An efficiently functioning market economy will correct temporary shortages and surpluses.
D) The existence of profits and losses provides signals to other economic agents.
E) In a free- market economy there is no role for government intervention.
Correct Answer:
Verified
Q69: Which of the following best explains why
Q70: The total costs of government intervention in
Q71: FIGURE 16- 1 Q72: The diagram below shows the marginal benefit Q73: The diagram below shows demand and supply Q75: Economic losses in an industry are a Q76: The diagram below shows the supply and Q77: If typical firms in a competitive industry Q78: The diagram below shows demand and supply Q79: Because of the free- rider problem,
A)government will
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents