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If, After Careful Analysis, an Economist Concludes That There Has

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Essay

If, after careful analysis, an economist concludes that there has been a market failure, which of the following possible corrective actions might the economist favor? Why?
a. prohibiting the activity
b. charging fees for continuing the activity
c. requiring that the public be informed of the activity
d. government purchase of the item for the public


Definitions:

Moderately Difficult Goals

Targets set for individuals or teams that are challenging yet achievable with effort, often optimizing motivation and performance.

Alderfer's ERG Theory

A motivational theory that categorizes human needs into three groups: existential, relatedness, and growth needs, suggesting that when higher level needs are frustrated, individuals will revert to lower level needs.

Secure Job

A position of employment perceived to have a low risk of job loss and often includes steady pay and benefits.

Interesting Job

Employment that is perceived as engaging, mentally stimulating, and fulfilling to the individual performing it.

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