Paternalism is the view that ________. A) consumers do not ...

[itsmyluck]

Paternalism is the view that ________.
 
  A) consumers do not always know what is best for them, and the government should encourage or induce them to change their actions
  B) producers do not always have the resources required for the production of a good, and the government should provide them with these resources
  C) the government should impose a tax on an economic activity only if it generates a negative externality
  D) the government has the supreme power to decide which goods are to be taxed and which are to be subsidized

Question 2

A firm is likely to pay higher efficiency wages when:
 
  A) it is easy to monitor workers.
  B) it is not easy to monitor workers.
  C) workers do not have a tendency to shirk at work.
  D) the minimum wages are set above the equilibrium wage rate.

[mmpiza]

Answer to Question 1

A

Answer to Question 2

B