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Unit 2.4: Market Failure and the Role of Government
Click on a chapter to visit its wiki page:
- 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.
Econ in the News - Unit 2.4 "Market Failure"
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welkerjason |
Latest page update: made by welkerjason
, Aug 13 2008, 8:53 AM EDT
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| Started By | Thread Subject | Replies | Last Post | ||
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| welkerjason | Role of government (page: 1 2 3 4) | 60 | Dec 15 2008, 4:37 PM EST by mkaga | ||
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Thread started: Jan 13 2008, 6:55 AM EST
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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.
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