Question

2. For each government activity, explain whether the government's action is intended to improve efficiency, to improve equity, or to improve both. Justify your responses. a. The Justice Department challenged the proposed acquisition of Time Warner by AT&T Inc. on anti-trust grounds arguing that "combining AT&T's video-distribution strength with Time Warner's stable of popular cable channels would give one company too much control of the media landscape, which it warns would lead to higher prices and less innovation." b. In the United States the government provides K-12 education at no charge to students.

Answer 1

(a) The aim here is to provide equity, that is ensuring a level playing field in the media landscape, as the acquisition could have led to some form of a monopoly/ distorted competition.

(b) In my opinion, the aim is to provide both equity (allowing every student to attain a common minimum education level) and at the same time efficiency, by providing a competitive alternative which can serve as a benchmark for quality education.

Let me know if something is missing..