Econ Assignment #4 2023 with complete solution

Market failure occurs because the market system does not make individuals responsible for the social​ costs/benefits of their actions. A cost or benefit of an economic activity that has an impact on an​ individual's well-being, even though the individual was not directly involved in the​ activity, is known as​ a(n) externality. Other than correcting​ externalities, other economic functions of government include providing a legal​ system, allocating public​ goods, promoting​ competition, and stabilizing the economy. National defense is public good A CD is a private good In many​ countries, education is either wholly provided by the government or is heavily subsidized. How would an economist explain​ this? The only way to provide education is through a​ government-sponsored system. Which of the following is not an economic function of​ government? Income redistribution. Money payments made by governments to individuals for which no services or goods are concurrently rendered are known as transfer payments. Since the​ 1960s, public spending on education has​ _________, while student performance has​ ______________. ​increased, remained constant or declined Government expenditures on Medicare have routinely turned out to be lower than the expenditures forecast at the time the program was put in place. t or f false Medicare spending is​ ________ total employer and employee contributions. growing much faster than Public schools provide educational services at a price below the market price. According to the theory of public​ choice, the employees of General Motors and employees of the U.S. Department of State should act differently because the incentives facing them are different.