Correct the answers if there is a mistake, explain why there is a mistake

1. Adam Smith argued that government should generally protect the interests of producers.

FALSE

2. A major weakness of the market economy as a means of allocating resources is that it requires central collection of large amounts of information.

FALSE

3. Missing information leads consumers to consume too much of a product

TRUE

4. The only way to control problems from externalities is to regulate the technology that corporations use.

TRUE

5. Because the majority agrees with political choices in a democracy, those choices necessarily increase consumer welfare

FALSE

6. Politicians would prefer to deal with voters directly, rather than through interest groups

FALSE