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22 July, 01:15

Select all of the following that are true. To an economist, a coercive government can be useful in order to: Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. Reallocate resources in order to improve efficiency. unanswered Fight negative externalities. unanswered Ensure low gasoline prices. unanswered Provide a low-risk economic environment for individuals and firms. unanswered

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  1. 22 July, 01:26
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    The correct answers are letters "A", "B", and "D": Reallocate resources in order to improve efficiency; Fight negative externalities; Provide a low-risk economic environment for individuals and firms. unanswered.

    Explanation:

    Coercive governments are stiff regimes that take control of the overall activities of a country. They are characterized by having a command economy, implying the government acts as the planner, producer, and regulator of the markets.

    Though, under the control of the central government, the resources of the country are strictly allocated according to inhabitant basic needs. Besides, entry opportunities for foreign companies are low which reduces competition and investment risks as well as negative externalities such as manufacturing production.
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