Ten Principles of Economics Algorithmic End of Chapter Due

Ten Principles of Economics : Algorithmic End of Chapter Due 01.16.18 at 11:45 PM Which of the The market failure associated with cable TV arises from the substantial influence on market prices. the cable TV firm, which allows the firm to have a

Solution

Answer 1: Option 3 (Providing some poor people with vouchers that can be used to buy foods) and option 4: (Imposing higher personal income tax rates on people with higher incomes)

Explanation: When the government is concerned about equality, it wants to redistribute economic resources in a way that everyone gets equal access to economic resources. Providing food vouchers to poor people increases their well-being. In addition, people with higher income is charged a higher income tax to redistribute income to the poor people through various government programmes.

Answer 2: Market power of

Explanation: Cable TV firms tend to be monopolies which have significant market power. When firms have significant market power, they can influence the market price.