A Friend Says, "I Really, Really Need a New Car

question 316

Multiple Choice

A friend says, "I really, really need a new car." As an economist, you're thinking

• A) Right! Everyone needs a new car.
• B) This is an example of how objectively undefinable needs are. Many would argue that this friend could get along just fine with a reliable used car.
• C) If this friend says she needs a new car, then we must all agree that a new car is a need and not just a want.
• D) that a new car can only be considered a need if at least 51% of the public agrees.

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Definitions:

Federal Government

The national government of a sovereign state, responsible for the governance of the country as a whole.

Restrictions

Restrictions are limitations or conditions placed on something, such as legal agreements, to control or direct its use or activities.

Eminent Domain

The right of a government or its agent to expropriate private property for public use, with compensation.

Inherent Power

The authority possessed by a sovereign state or government without needing to be granted by a law, deriving from the very nature of the government's existence.