Why are healthcare and education not public goods and why do governments play a large role in the markets for these services?
What will be an ideal response?
Healthcare and education are not public goods because they are rival and excludable. But governments play a major role in the market for these services because a majority of voters want these goods provided to people regardless of the people's ability to pay for them. Because of this view, public choices are used to determine the quantity of healthcare and education services provided.
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If the market wage rate increases, a firm's labor demand curve does not shift but the labor supply curve shifts to the right
Indicate whether the statement is true or false
If a firm decides to ignore the reactions of its rivals to its policies, the appropriate model to analyze its behavior is
a. game theory. b. perfect competition. c. monopoly. d. cartels.