posted by .

How can government interference create inefficient production? Use at least one example.

I can think of a plentitude of ways. Think of government programs or actions that change market equilibriums. (three hints: tarriffs, price controls, special tax credits.)

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    True OR False 1)Marginal cost is the additional cost incurred in undertaking an activity?
  2. Economics

    Describe three specific measures the government can use to access the health of a country's economy. Take a shot. Think. There are a plentitude of ways governments affect the health of their economies. I have some ideas but I'm not …
  3. Economics

    The price received by sellers in a market will decrease if the government Answer A. imposes a binding price floor in that market. B. decreases a binding price ceiling in that market. C. decreases a tax on the good sold in that market. …
  4. Economics

    The market equilibrium price for coffee beans in Ecuador is $2.75/pound, a price at which growers are unable to make a profit. Due to the lack of profits, many growers have stopped production and the output of coffee beans has fallen …
  5. Microeconomics

    Can someone help me with a hint to solve this problem?
  6. Math economics HELP!!!

    Can someone please help me with a hint to solve this problem?
  7. Economics HELP PLEASE!!!!

    Can someone please help me with a hint to solve this problem?
  8. Econ

    In the case of a negative externality: Select one: a. the private market does not produce enough of the good. b. market price reflects the social costs of production. c. efficiency requires that the government impose a subsidy. d. …
  9. Economics

    Consider the problem of a monopolist that sells its product on two different markets m, with m=1,2. Each market has an aggregate demand function given by 1200−α_m*p_m, where p_m denotes the price in market m, and α_m=m …
  10. civics help ms sue

    Fiscal conservatism is the belief that government should not have large debts, and that government programs should not be paid for on borrowed money. How could both Democrats and Republicans be considered fiscally conservative?

More Similar Questions