Jeff and James have different opinions regarding the amount the U.S. government should spend on national defense.

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Jeff and James have different opinions regarding the amount the U.S. government should spend on national defense. Jeff believes that more should be spent in order to ensure that the country's enemies will not challenge the United States militarily. James believes that a lot of defense spending is wasted on overpriced military equipment and that the United States "should not be the world's policeman." Suppose that instead of the U.S. Congress and the president having the authority to determine the amount the military has to spend, this authority is turned over to the private sector. A privately owned firm conducts a survey to determine the willingness of people to pay for national defense. In response to the survey, both Jeff and James state that they are not willing to pay anything for national defense. Explain why they would both give this response?
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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