close
Welcome! Wikis are websites that everyone can build together. It's easy!

Microeconomics Unit IV - Market Failure and the Role of Government

Chapter 28 - Government and Market Failure: In this chapter you will learn:
  • How public goods are distinguished from private goods.
  • The method for determining the optimal quantity of a public good.
  • The basics of cost-benefit analysis.
  • About externalities (spillover costs and benefits) and the methods to remedy them.
  • How information failures can justify government interventions in some markets.

Chapter 29 - The Economics of Taxation: In this chapter you will learn:
  • The different tax philosophies and ways to distribute a nation's tax burden.
  • The principles relating to tax shifting, tax incidence, and efficiency losses from taxes.

AP Econ in the News - Unit 4 "Market Failure"

Unit 4 Student Thought forum: This unit we're going to start something different for the Student Thought Forum. Instead of a wiki page where everyone edits, I've started a "discussion forum" thread on THIS page. Simply scroll down, read what people are talking about (I started one thread), respond to a topic that interests you OR start a new thread on the topic of your choice. EVERYONE must make at least one contribution to the discussion before the unit test.


Latest page update: made by welkerjason , Mar 9 2008, 10:13 AM EDT (about this update About This Update welkerjason Edited by welkerjason

20 words added

view changes
- complete history)
Keyword tags: None
More Info: links to this page

Threads

Anonymous  (Get credit for your thread)
Started By Thread Subject Replies Last Post
welkerjason Role of government (page: 1 2 3) 53 May 20 2008, 8:27 AM EDT by rishabhtagore
welkerjason
Thread started: Jan 13 2008, 6:55 AM EST  Watch
My question for you guys is this: Just how much of a role should the government play in a modern market economy? Many politicians and economists argue that the government should play a smaller and smaller role as our market economy becomes more developed. Eventually, all goods and services can and should ultimately be provided by the free market. Education, health care, transportation, even parks and open spaces... if individuals get utility from consuming these things, they should have to pay for them in the market.

And when it comes to correcting negative externalities, let the market take care of that too. If someone is being harmed by a spillover from someone elses economic transaction, they should be able to settle on their own, the government should play no role in solving conflicts of interest in a free market.

So, what do you think? Should the future be a place of more or less government in the economic lives of the people in free countries? Discuss.
1  out of 2 found this valuable. Do you?    
Keyword tags: free markets government market failure public goods
Show Last Reply