Question 1
The "informal defence" of free markets includes the argument that markets
◦ lead to allocative efficiency.
◦ achieve the maximum feasible rate of economic growth.
◦ lead to productive efficiency.
◦ provide automatic coordination of the actions of decentralized decision makers.
◦ permit a centralization of economic power.
Question 2
Why might it be economically efficient to offer access to an uncongested art gallery or museum at a price of zero?
◦ because they are public goods, which would not be provided by the free market
◦ because they are non-rivalrous and non-excludable and therefore should be provided at a price of zero
◦ because the marginal cost of providing access to one more visitor is zero, while the visitor has a positive marginal benefit
◦ because it is good for society if more people visit art galleries and museums
◦ because the marginal benefit received by the visitor is zero, and marginal benefits and marginal cost should be equal
Cougar, photographed in the Arizona-Sonora Desert Museum, Tucson, Arizona
Language Access Services
Fred Wilson, Metalwork 1793–1880, from Mining the Museum: An Installation by Fred Wilson
Frank Gehry, Guggenheim Museum Bilbao, North Elevation.
Water Access
Efficient Allocation of Labor between Sectors