Answer to Question #98698 in Economics of Enterprise for Joshua

Question

1. The text discusses the Government’s “Ability to Coerce”. Describe why this is important and provide two examples of how/why this happens.

Answer 1

The coercive power of the state is useful when it protects our lives and property from outside harm. In law, coercion is codified as a duress crime. Such actions are used as leverage, to force the victims to act in a way contrary to their own interest. Also, many government contracts rely on expensive government enforcement. Minimum wage laws, like most restraints on trade and like tax laws, are enforced with the power of the state