Wk 3 - Critical Analysis
Questions Chapters 5 & 6
Answer and submit using
APA format the following Critical Analysis Questions:
Chapter 5: Questions 3,
3. What are the distinguishing characteristics
of “public goods”? Give two examples of
a public good. Why are public goods
difficult for markets to allocate efficiently?
12. What are the necessary conditions for
economic efficiency? In what four
situations might a market fail to achieve ideal economic efficiency?
13. What is market failure? If market failure is present, does this imply
that government intervention will lead to a more efficient allocation of
resources? Why or why not?
Chapter 6: Questions 3,
3. “If there are problems with markets,
government will generally be able to intervene and correct the situation.” Is this statement true? Explain your response.
13. “Because government-operated firms do not
have to make a profit, thy can usually produce at a lower cost and charge a
lower price than privately owned enterprises.”
Evaluate this view.