Answer to Question #229922 in Microeconomics for Ploy

Question

In each of the following situations, what is the

government’s role?

Does the government’s intervention improve the outcome?

A. Public schools for K-12

B. Workplace safety regulations

C. Public highways

D. Patent laws, which allow drug companies to charge high prices for life-saving drugs

Answer 1

A. Public schools for K-12

The government have a responsibility to ensuring the right to a free and high quality education for all K-12 students by protecting their civil rights and by providing resources for the most in need.

This improves the outcome as all the kids are able to get access to education.

B. Workplace safety regulations

The role of government is to ensure the safety, health and welfare of workers through the Occupational Safety and Health Act of 1970.

The outcome of the intervention is always positive as the workers are treated well with dignity.

C. Public highways

The role of government is to provide funding aid programs for the construction and imposing regulation on their usage.

This helps in reducing accidents.

D. Patent laws, which allow drug companies to charge high prices for life-saving drugs

The role of government is to control the prices of drugs by setting the prices. This reduces the cost of purchasing the drugs for the patients.