It May Be Preferable for Government to Intervene to Impose

question 23

Multiple Choice

It may be preferable for government to intervene to impose a public standard rather than let a private,de facto standard be determined through competition because:

• A)Governments are superior to markets in selecting the best technology
• B)A private,de facto standard can take a long time to become established,thereby delaying the adoption of a new technology
• C)Competition is always wasteful
• D)De facto standards tend to be set by US companies

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Definitions:

Money Income

The total income a person or entity receives in monetary form, including wages, salaries, benefits, and income from investments.

Marginal Rate

A term used to describe the rate at which one variable changes as another variable changes by a single unit, often applied in economic analysis like the marginal tax rate or marginal rate of substitution.

Substitution

The act of replacing one good or service with another due to changes in price or preference.

Price Ratio

The relative price of one good or service in comparison to another, often used in economic analysis and decision-making.