Wednesday, July 20, 2011

Government policies are coercive, whereas markets are not

ECONOMICS

Multiple Choice

Government policies are coercive, whereas markets are not. This implies that

a.government activity will always be less efficient than market activity

b.households cannot maximize utility if they consume any government goods and services

c.market transactions result in an equal number of gainers and losers

d.self-interest and public interest are always in conflict

e.government can provide some goods and services when private markets fail to do so

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