U2L3a HW Econ on Quizizz

The government should get involved in the economy to ensure worker safety through laws. What is the role of these laws?

• To protect workers from unsafe working conditions

• To increase government revenue

• To promote international trade

• To reduce government spending

The government should get involved in the economy when:

• there is a need to regulate industries like barber shops through licenses.

• the economy is performing well without any issues.

• private businesses are thriving without any government support.

• there is no need for any regulations or licenses.

The government should get involved in the economy when:

• there is a need to regulate monopolies.

• the market is perfectly competitive.

• there is no unemployment.

• inflation is at 0%.

What is a market failure?

• A situation where the allocation of goods and services is not efficient

• A situation where the market operates perfectly

• A situation where there is no government intervention

• A situation where supply always meets demand

What is one of the four market failures?

Explain the concept of public goods as a market failure.

• Public goods are non-excludable and non-rivalrous, leading to underproduction in a free market.

• Public goods are excludable and rivalrous, leading to overproduction in a free market.

• Public goods are non-excludable and rivalrous, leading to efficient production in a free market.

• Public goods are excludable and non-rivalrous, leading to underproduction in a free market.

Externalities in the context of market failures are:

• unintended side effects that affect third parties

• government interventions in the market

• price controls imposed by authorities

• natural monopolies

Imperfect competition leads to market failure because:

• it results in inefficient allocation of resources.

• it ensures perfect allocation of resources.

• it leads to equal distribution of wealth.

• it promotes maximum consumer satisfaction.

Public Goods: If there was no government, how would schools, parks, and freeways be different? Would there be enough to meet our needs?

• There would be no schools, parks, and freeways.

• Private entities would provide these services, but access might be limited.

• Communities would self-organize to provide these services.

• There would be an abundance of these services.

What is the Public Sector? A) The part of the economy that is primarily controlled by the government B) The part of the economy that is run by private individuals and companies that seek profit.

• A) The part of the economy that is primarily controlled by the government

• B) The part of the economy that is run by private individuals and companies that seek profit.