Give an example where individuals vote with their feet in ...

[erika]

Give an example where individuals vote with their feet in choosing among bundles of public goods and tax rates.
 
  What will be an ideal response?

Question 2

Why is it difficult to determine whether an industry is operating efficiently when there is rapid technological process underway?
 
  What will be an ideal response?

[millet]

Answer to Question 1

Student responses will vary. The example should discuss some individuals choosing to live in areas with high taxes and large amounts of public goods provided, while others choose to live in areas with low taxes and small amounts of public goods provided.

Answer to Question 2

The reason is that rapid technological process typically brings about continued falling marginal and average total cost. Since you never know where those costs are headed its difficult to determine if a firm or industry is operating efficiently when further cost reductions are right around the corner.