Ebook Economic (10th edition): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Economic (10th edition): Part 2
Ebook Economic (10th edition): Part 2
PART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choic Ebook Economic (10th edition): Part 2ces are made in the political marketplace♦Explain how the free-rider problem arises and how the quantity of public goods is determined♦Explain why mixed goods with external benefits lead to inefficient underproduction and how public production, subsidies, and vouchers can achieve allocative efficien Ebook Economic (10th edition): Part 2cy16ighting a California wildfire, screening passengers at an airport, providing good schools and colleges, defending the nation's borders and interesEbook Economic (10th edition): Part 2
ts around the globe, policing neighborhoods and highways, operating courts and a legal system: Governments are involved in all these activities. But wPART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choic Ebook Economic (10th edition): Part 2ces? Do governments overprovide or underprovide—provide too much or too little? These are the questions we study in this chapter.We begin by classifying goods and services and explaining the economicDI I D I I z'""1—1IỐ" c ctheory of why and how governments intervene in markets, orIkJ DLI V-nI V— L Ebook Economic (10th edition): Part 2oeven replace them. We apply this theory Io the provision ofpublic services. Two such public services are education and AND PUBLIC GOODS health care.Ebook Economic (10th edition): Part 2
You will see how the political marketplace provides these services.In Reading Between the Lines at the end of the chapter, we look at some of the strePART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choic Ebook Economic (10th edition): Part 2omic choices are made by individuals, but some choices are private and some are public. A private choice is a decision that has consequences for only the person making it. Decisions to buy (demand) or to sell (supply) goods and services in competitive markets are examples of private choices. At the Ebook Economic (10th edition): Part 2market equilibrium price, these choices are consistent and one persons decision to buy or sell a little bit more or a little bit less has an imperceptEbook Economic (10th edition): Part 2
ible effect on rhe outcome.A public choice IS a decision that has consequences for many people and perhaps for an entire society. Decisions by politicPART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choic Ebook Economic (10th edition): Part 2 public choices.You studied the consequences of some public choices in Chapter 6 where you saw how price ceilings and price floors prevent voluntary exchanges even though marginal social benefit exceeds marginal social cost; you also saw how taxes drive a wedge between marginal social benefit and ma Ebook Economic (10th edition): Part 2rginal social cost. In Chapter 7, you saw how tariffs and import quotas restrict international trade. All of these public choices result in scarce resEbook Economic (10th edition): Part 2
ources being used inefficiently—they create deadweight loss.Why do governments do things that create inefficiency? Aren’t they supposed to make thingsPART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choic Ebook Economic (10th edition): Part 2f government explains both why governments exist and why they do a less-than-pcrfcct job.Why Governments ExistGovernments exist for three major reasons. First, they establish and maintain property’ rights. Second, they provide nonmarket mechanisms for allocating scarce resources. Third, they impleme Ebook Economic (10th edition): Part 2nt arrangements that redistribute income and wealth.Property rights are the fundamental foundation of the market economy. By establishing property rigEbook Economic (10th edition): Part 2
hts and the legal system that enforces them, governments enable markets to function. In many situations. markets function well and allocate scarce resPART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choic Ebook Economic (10th edition): Part 2 of some things and too few of some other things are produced. Choices made in the pursuit of self-interest have not served the social interest. By reallocating resources, it is possible to make some people better off while making no one worse off.The market economy also delivers a distribution of i Ebook Economic (10th edition): Part 2ncome and wealth that most people regard as unfair. Equity requires some redistribution.Replacing markets with government resourceallocation decisionsEbook Economic (10th edition): Part 2
is no simple matter. Just as there can be market failure, there can also be government failure. Government failure is a situation in which governmentPART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choic Ebook Economic (10th edition): Part 2, each with their own economic objectives. Public choices arc the outcome of the choices made by these individuals. To analyse these choices, economists have developed a public choice theory of the political marketplace.Public Choice and the Political MarketplaceFour groups of decision makers, shown Ebook Economic (10th edition): Part 2 in Fig. 16.1. interact in the political marketplace. They arc■Voters■Firms■Politicians■BureaucratsVoters Voters evaluate politicians’ policy proposalEbook Economic (10th edition): Part 2
s, benefit from public goods and services, and pay' some of the taxes. In the economic model of public choice, voters support the politicians whose poPART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choic Ebook Economic (10th edition): Part 2king campaign contributions.Firms Firms also evaluate politicians' policy' proposals. benefit from public goods and services, and pay-some of the taxes. Although firms don't vote, they do make campaign contributions and are a major source of funds for political parties. Firms also engage in lobbying Ebook Economic (10th edition): Part 2 activity to persuade politicians to propose policies that benefit them.Politicians Politicians are the elected persons in the federal, state, and locEbook Economic (10th edition): Part 2
al governments—from the President of the United States to the SuperintendentPART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choicPART FIVE Market Failure an-overnmentAfter studying this chapter, you will be able to:♦Explain why some choices ore public choices and how these choicGọi ngay
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