Which of the Following Is an Argument an Economist Would

question 83

Multiple Choice

Which of the following is an argument an economist would use to argue against market regulation designed to protect consumers?

• A) Information is costless and readily available, and so it is up to consumers to beware.
• B) When a brand name product is found unsafe, the value of the brand is reduced, which gives companies with brand names an incentive to produce high-quality products.
• C) Manufacturers have no incentive to stop the sale of counterfeit products.
• D) Government is more likely to have consumers' interest in mind than does the market.

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Automatic responses or actions triggered without conscious thought, typically as a physiological reaction to stimuli.

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Employment benefit that provides pay to women during a period of absence from work in the weeks before and after childbirth.

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The feeding of babies and young children with milk directly from female human breasts rather than from a baby bottle or other container.