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Author Question: What is the government's major problem involved in reaching the optimal level of provision for ... (Read 45 times)

SGallaher96

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on: Jun 29, 2018
What is the government's major problem involved in reaching the optimal level of provision for public goods?
 
  What will be an ideal response?

Question 2

If a country's currency ________ the dollar, its exchange rate is fixed.
 
  A) is exchanged in currency markets for
  B) has a floating exchange rate value which is equal to
  C) depreciates against
  D) is pegged to


leannegxo

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Reply #1 on: Jun 29, 2018
Answer to Question 1

To produce the optimal amount of each public good, the government must know everyone's preferences. Surveys about the willingness to pay may be biased if individuals have incentives to hide their true feelings.

Answer to Question 2

D


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