a) Summarize the basic tenets of the arguments in this case

 Free-markets are considered too dangerous.

 Markets are inefficient in distribution of public goods

b) Do you agree with main tenets of the arguments in the case? Why? Justify your answer
with detailed explanations. support your answers with references
operating system was mandated from the heavens. The democratic-
corporate state is therefore a necessary evil that must impose itself on society, touching the lives of all,
for our own good. That's a heavy price to pay for magic beans. Free-markets, where

c) State and explain to Mark Davis that there are rational reasons why public goods and services
cannot be priced in market mechanisms. support your answers with references
this myth includes self-nterested professors who spend a lifetime informing young, bright-eyed s
tudents about the magical qualities ofthese special goods that can only be provided by popular p
eople with big guns. The media reports on the provision
Public goods are nonexclusive – once they are produced, they provide benefits to everyone –
Technically, it is impossible to restrict the benefits to the specific groups of individuals who pay
for them
E.g. defense system of a country – all individuals in society are protected by it – whether they
wish to be or not and – whether they pay for it or not.
Externalities lead to inefficient allocations of resources because market prices do not accurately
reflect the additional costs imposed on or the benefits provided to third parties