349)
Is there any common characteristic shared by government–inhibited goods and government–sponsored goods?
Explain briefly.
350)
Suppose a valley periodically floods. A dam can be built in the river that would prevent the flooding. Explain
how flood control provided by building the dam arguably fits the characteristics of a public good.
351)
Explain why economists consider it to be one of the economic functions of government to provide a legal
system.
352)
Explain what economic efficiency is. How does a price system lead to economic efficiency?
353)
What is the purpose of antitrust legislation?
354)
Explain why public goods can be classified as market failure? Explain what problem arises when public goods
are produced?
355)
According to the textbook, what are the two key political functions of government in a market economy?
356)
List and explain the four key assumptions in the theory of public choice.
357)
How does a government–sponsored good differ from a public good?
358)
What is an externality? How do positive and negative externalities differ in their effects? How can government
action correct positive and negative externalities?
359)
What are the key characteristics of a public good?
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Answer Key
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