Question

The economic way of thinking indicates that government action will

a - never improve on the allocation of resources through markets.

b- always improve on the results of markets if the political process is democratic.

c- eflect the actions of political decision-makers seeking to advance the public interest, rather than their own personal interests.

d -can either improve the well-being of the general public, or harm it, depending on the circumstances.

Answer 1

Since the economy thinks in a broader way for the whole country.

• option C is limited to only the political decisions and the public interest so it will be not the answer
• It is also not true that if the political process is only democratic then there will be better results of the government action because many times democracy also fails for implementing better results
• But option d which talks about what it can either improve the situation of public or harm
• And it totally depends on the situation.
• say, for example, if the economy is struggling with the high inflation then government decision may impact a lot to the general public.
• when the situation of a country is a good government then government tries to focus on best offers and help to the general public for better advance advancement of their standard of living and life

The answer is option D