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Mobile App Problem 5
Explain how taxes can be used to deal with negative externalities.
Problem 5
"In a free enterprise system, it is possible that more trashy novels will be published and sold than serious, soulinspiring works of literature. Any system that produces this outcome can't be cthical." Do you agree or disagree with this statement? Explain your answer.
Problem 6
Many people think that profit benefits only the person who earns it; in other words, profit provides no social function. Do you agree or disagree? Explain your answer.
Problem 6
Give an example of a setting in which a free rider is present.
Problem 6
How does voluntary exchange benefit a person?
Problem 7
What advantages do consumers get from the competition between sellers?
Problem 8
Would Adam Smith agree that the benefits of free enterprise are a consequence of the human desire to make life better for others? Explain.
Problem 9
Teachers want students to do their homework completely, carefully, and on time. Identify an incentive that you think would increase student efforts toward reaching these objectives.
