Because Government Bodies Have the Power to Impose Limits on How

question 45

Multiple Choice

Because government bodies have the power to impose limits on how much of a resource is consumed:

• A) it can be efficiency enhancing in markets for common resources.
• B) it will always cause deadweight loss.
• C) they decide what is the "right" amount for the public to consume.
• D) they will often correct a market before testing the effectiveness of social norms to correct the problem.

Evaluate the effectiveness of welfare policies and reforms on poverty alleviation.

Understand the impact of government policies on wealth concentration and welfare dependency.

Identify the socioeconomic factors leading to higher poverty rates among certain demographic groups.

Analyze the concept of poverty as both a relative and absolute condition.

---

Definitions:

Bounded Rationality

The idea that we are restricted by a variety of constraints when making decisions.

Bounded Rationality

A concept that decision-makers are limited by the information they have, their cognitive limitations, and the finite amount of time they have to make a decision.

Essential Rationality

The inherent human capacity to think logically and make decisions based on reason and critical thinking.

Programmed Decisions

Decisions made using a rule, policy, or procedure for routine or repetitive problems that have been encountered before.