Which of the Following Is Not an Example of Government's

question 39

Multiple Choice

Which of the following is not an example of government's role as a referee?

• A) Equal opportunity and labor laws that restrict businesses' freedom to hire and fire whomever they want
• B) Regulations governing safety in the workplace, wages, overtime, and hours of work
• C) Laws prohibiting businesses from meeting to fix prices
• D) Laws that require states and the federal government to balance their budgets

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Definitions:

Status Quo Bias

A cognitive bias that represents a preference for the current state of affairs, leading individuals to resist change.

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Marginal Benefit

The further satisfaction or value an individual gains from consuming an extra unit of a certain product or service.

Optimal Quantity

The amount of a good or service that achieves the best balance between cost and benefit.