One Result of the Public Choice Model Is That Most

question 197

Multiple Choice

One result of the public choice model is that most economists believe that

• A)when market failure occurs, government intervention will always lead to a more efficient outcome.
• B)government intervention will always result in a reduction in economic efficiency in regulated markets.
• C)policymakers may have incentives to intervene in the economy in ways that do not promote economic efficiency.
• D)the voting paradox will prevent voters from selecting the best person for public office.

Comprehend the role and importance of logistics in the supply chain.

Recognize the functions and types of intermediaries in the distribution process.

Identify the factors influencing the selection of transportation modes for goods.

Grasp the concept and operational principles of retailing, including factors affecting retailing decisions.

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Definitions:

Long-run Equilibrium

A state in which all factors of production and inputs can be varied, allowing for full adjustment by firms and the economy, and no excess demand or supply exists.

Decline in Demand

A decrease in the willingness and ability of consumers to buy goods and services at existing prices, which can lead to lower market prices.

Constant-cost Industry

An industry in which the costs of production, including inputs and labor, do not change as the overall industry output changes.

Resource Prices

The cost associated with acquiring the natural resources needed for production, such as minerals, timber, water, and land.