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Q. Why does government undertake an economic activity?
If ever an activity has large externality or spill over and includes a large number of people, it may be found better that government undertakes it. As David Hume once pointed out, it is easy for two persons to agree/bargain for terms of draining a field affecting them but it would be very difficult for a large number of persons to make the decision on terms of sharing cost of drainage.
In the context of hospital care, explain and distinguish between occupancy rate, capacity, and utilization.
how do a traditional economy, a market, a centrally planned economy, and a mixed economy differ?
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