Question

Why should education be a public good?

a If left up to the free market it would be underproduced

c the government wants to control how children think

d the government does not want teacher to be paid too much

From an economics prospective, companies should eliminate all crime

a If they are frustrated with people stealing from them

b if the cost o eliminating crime is greater than the benefit of the crime prevention

c if the company has high moral standards

One way to determine the type of economic system a country has is to

a Measure their population

b divide the amount of government spending by the total spending(gdp)

c measure the number of democrats versus the number of republicans

Answer 1

a If left up to the free market it would be underproduced

If education is not a public good, the market forces will make it expensive for everyone to be able to get.

c if the company has high moral standards

Because of reputation of the firms, they eliminate the crime from their firm so as to become high moral standard company.

c measure the number of democrats versus the number of republicans

This is the way to determine whether the economy is socialist or capitalist.