7 Explain whether each of the following government activities is motivated by a concern about equity or
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7 Explain whether each of the following government activities is motivated by a concern about equity or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved.
a regulating fixed-line telephone prices b providing some poor people with vouchers that can be used to buy food c prohibiting smoking in public places d breaking up Google and Facebook into smaller companies, each focused on a different product (for example, search, advertising, mobile operating systems)
e imposing higher personal income tax rates on people with higher incomes f instituting laws against driving while intoxicated.
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Related Book For
Principles Of Microeconomics
ISBN: 125206
8th Edition
Authors: Joshua Gans, Stephen King, Martin Byford, N Gregory Mankiw
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