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Apologists for government intervention in matters economic usually justify their preferences for government coercion of people by claiming that markets often can and do fail to deliver efficiency, equity or both.
The most common claims of such apologists about the failure of markets to deliver efficiency or equity are (1) monopoly power, (2) externalities, (3) information asymmetry, and (4) a claimed need to stabilize the economy.
For the sake of discussion, suppose markets do sometimes fail to deliver efficiency or equity. Would the event of such market failure justify government intervention?Write a short essay that argues either yes or no. Remember, normative opinions are not what we're after. Logic and true positive statements are the order of the day.
Find two articles about a macroeconomic problem currently in the news from either a newspaper or news magazine.
Estimate possible macroeconomic arguments might President Obama use to defend his $862 billion fiscal stimulus package as a part of his economic recovery plans?
Elucidate a monopoly which formed naturally or through vertical or horizontal mergers.
a. Describe a situation where prices have been held out of equilibrium due to government intervention in the market-the obvious ones discussed in the text are rent control and agricultural subsidies. You may use a specific example of one of these,..
The economy is doing well in 2000. Revenue was rising and the stock market hit new record highs. As a result, the price of housing rose.
Explain is low stable inflation also deflation better for the economy.
Draw the indifference curves map corresponding to welfare function (1) with the rate of unemployment on the horizontal axis and the inflation rate on the vertical axis.
Among which method of encouraging growth would one suggest for these typical companies in these 2 countries.
Which of the following is the most valid expression of a theory of underconsumption as a cause of business cycles? a. capital goods production encroaches on consumer goods production b. income equals production, but not all income is used for current..
The table above demonstrate the prices and quantities of 2-goods produced in a country in 2006 and 2007. These are the only goods produced in the country.
If you were an economist for Mattel, manufacturer of the doll Barbie, determine which was making an unsolicited bid to take over Hasbro, manufacturer of G.I. Joe,
Explain by how much should domestic automakers raise the price of automobiles if they wish to increase sales by 5 percent next year?
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