Why do some economists prefer government planning and financing of big-push development to private sector development? Because
a. private firms have a longer planning horizon than governments
b. governments have a longer planning horizon than private firms
c. private firms cannot collect taxes
d. it takes less initial start-up capital than any alternative development strategy
e. private firms create markets and government planning does not require market creation
B
You might also like to view...
Based on the data in the table above, when Decent Donuts hires eight workers, the
A) average product of labor is greater than the marginal product. B) marginal product of labor is greater than the average product. C) marginal product of labor is equal to the average product. D) marginal product of labor is not defined.
Which of the following is a reason why firms can be more efficient than markets as coordinators of economic activity?
A) economies of scale and scope B) higher transactions charges C) elimination of the principal-agent problem D) all of the above