Which of the Following Is a Valid Reason for Government

question 56

Multiple Choice

Which of the following is a valid reason for government provision rather than market provision of certain economic goods and services?

• A) When the government provides economic goods, they are free; costs are only incurred when such goods are provided by private firms.
• B) Voters tend to be better informed than market consumers.
• C) Decision makers in the market are motivated by self-interest, whereas, political decision makers are primarily motivated by the desire to help others.
• D) Public goods tend to be undersupplied through the market since it is difficult for potential suppliers to withhold such goods from nonpaying consumers, while the government can use taxes to overcome this problem.

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Definitions:

Crashworthiness Cases

Legal cases that evaluate the ability of a vehicle to protect its occupants during an accident.

Enhanced Injuries

Injuries that are worsened due to another party’s negligence or intentional actions, often considered in legal claims for damages.

Negligently Designed

Refers to a product that was created without due care, leading to a potential risk of harm to the user.

Implied Warranty

An unwritten guarantee that the product sold meets certain criteria for usability and satisfaction.