Macroeconomics: Principles, Problems, & Policies
20th Edition
ISBN: 9780077660772
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 5, Problem 4DQ
To determine
The impact of limited and bundled choice on economic efficiency.
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How does the problem of limited and bundled choice in the public sector relate to economic efficiency? Why are public bureaucracies alleged to be less efficient than private enterprises?
How does the problem of limited and bundled choice in the public sector relate to economic efficiency? Why are public bureaucracies possibly less efficient than business firms?
How do government failures provide rationale and justification for public policy?
Chapter 5 Solutions
Macroeconomics: Principles, Problems, & Policies
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- Mr. Saeed Ahmed loves watching sports channel on his local public TV station, but he never sends any money to support the station during its fund-raising drives. What name do economists have for people like Mr. Saeed Ahmed? b. How can the government solve the problem caused by people like Mr. Saeed Ahmed? c. Can you think of ways the private market can solve this problem? How does the existence of cable TV alter the situation?arrow_forwardWhat challenges and opportunities would arise from higher and lower degrees of government intervention?arrow_forwardWhy are broad social indicators rarely used as measures of public program performance?arrow_forward
- What are the implications of a free government system in an economy?arrow_forwardWhat is public administration? Define bureaucracy and explain the role of bureaucracy in public administration. Is the role of bureaucracy has been for constitutional legitimacy? If so, what powers are given to public administrators to formulate and implement the public's will? Answer in 250 words or more thanarrow_forwardTrue or false and use a graph to explain: a) can it be welfare-improving for governments to undertake investments that would not be profitable for private firms? b) when there is congestion, do you think a toll road can lead to a higher level of social welfare than a freeway, but in the absence of congestion, freeways are better than toll roads?arrow_forward
- Different Schools of thought propose theories to explain government failure. Based on public choice theory, briefly explain the foundations of government failure.arrow_forwardExplain the concept of market failure and its implications for both governments and businessesarrow_forwardEconomics Present a model of public good provision. What is the Pareto efficient quantity of the public good? How might the Pareto efficient quantity be provided in the economy?arrow_forward
- What is meant by the concept "laboratories of democracy"? Why do you think state and local governments are excellent laboratories for applying comparative analysis when it comes to the study of state and local governments?arrow_forwardIn what way is the private economy better than the government? Select the correct answer below: the private economy may allow a powerful monopoly to exist the private economy may cause environmental degradation the private economy does not take into consideration the "invisible hand" of the market the private economy has the self-correcting mechanism of marketsarrow_forwardWhen economists look for some explanation for government provision, we want to find some kind of market failure from the market provision of water. So what market failure can explain this?arrow_forward
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