Describe how the government differs from private firms and individuals participating in a market
Please provide the best answer for the statement.
Private firms and individuals participate in the market voluntarily. Firms participate if their willingness to pay is below or equal to the market price, if not they will remain out of the market. Individuals participate if their willingness to buy is equal to or above the market price, if not they will remain out of the market. The government differs from these groups because it has the legal right to enforce involuntary transaction. For example, car insurance must be purchased by all drivers. If a driver does not have proof of insurance they can receive fines.
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The 95% confidence interval for the dynamic multipliers should be computed by using the estimated coefficient ±
A) 1.96 times the RMSFE. B) 1.96 times the HAC standard errors. C) 1.96, since the HAC errors are standardized. D) 1.64 times the HAC standard errors since the alternative hypothesis is one-sided.
In a simultaneous move, incomplete information game in which player 1 is unsure of which of two types player 2 is, player 1's strategy must include an action for each possible type that player 2 might be, but player 2 only needs to pick one action since he knows what type he is.
Answer the following statement true (T) or false (F)