Economists Generally Do Not Agree to Limit the Private and Voluntary

question 37

Multiple Choice

Economists generally do not agree to limit the private and voluntary actions of people, but in the case of gambling, economists will admit that gambling

• A)can be addictive, so regulation could be justified for that reason.
• B)teaches people about statistics.
• C)has external benefits, so it must be subsidized.
• D)is immoral, so it must be prohibited.

Identify and explain voter failure and its impacts on policy outcomes.

Describe examples of voter failure and understand their consequences for societal welfare.

Understand the concept of logrolling and its potential effects on economic efficiency.

Understand the concepts of producer and consumer surplus.

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Definitions:

Price Discriminate

The practice of selling the same product or service at different prices to different customers, not based on differences in production costs.

Pure Monopolist

A single producer in a market who controls all supply of a product with no close substitutes, allowing them to exert significant power over prices and quantities sold.

Profit-Maximizing

A business strategy focused on finding the optimal level of output at which total revenues exceed total costs by the greatest amount.

Marginal Cost

The change in total cost that arises from producing one additional unit of a product or service.