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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Definitions:

Saturated Fats

Fats containing a high proportion of fatty acid molecules without double bonds, considered less healthy in diets.

Calcium

A mineral essential for human life, involved in bone formation, muscle contraction, nerve function, and blood clotting.

Healthy Bones

Bones that are strong, dense, and capable of supporting the body and withstanding physical stress.

Blood Clotting

The process by which blood changes from a liquid to a gel, forming a clot to prevent excessive bleeding when the vascular system is injured.