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The Government Often Intervenes When Private Markets Fail to Provide

question 19

Essay

The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the government imposes an excise tax on gasoline to account for the negative externality that drivers impose on one another. Why might the private market not reach the socially optimal level of traffic without the help of government?


Definitions:

Isometric Exercise

Exercise performed by contracting muscles against an immovable object.

Muscle Endurance

The ability of a muscle or group of muscles to sustain repeated contractions or to continue applying force against a fixed object for an extended period.

Cardiovascular Fitness

The ability of the heart, lungs, and blood vessels to supply oxygen to the muscles during sustained physical activity, indicative of overall heart health.

Lung Capacity

The maximum amount of air the lungs can hold, vital for respiration and overall health.

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