Which of the Following Statements Might Be Used by an Economist

question 12

Multiple Choice

Which of the following statements might be used by an economist to argue that the government, rather than the market, should finance the provision of certain economic goods and services?

• A) Decision makers in the market sector are motivated by self-interest, whereas political decision makers are primarily motivated by altruism (the desire to help others).
• B) Public goods tend to be undersupplied by private business because of nonpaying consumers; the government can use taxes to overcome this problem of non-payment.
• C) When the government provides economic goods, they are free; costs are incurred when such goods are provided by private firms.
• D) Voters tend to be better informed than market consumers are.

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Definitions:

Risk Factor

An aspect of personal behavior or lifestyle, an environmental exposure, or a genetic characteristic that is associated with an increased occurrence of disease or injury.

Veracity

A moral principle that holds that people should tell the truth and not lie.

Painful Procedure

A medical or therapeutic intervention that causes discomfort or pain to the patient, often requiring specific pain management techniques.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.