Why does government undertake an economic activity, Public Economics

Assignment Help:

Q. Why does government undertake an economic activity?

If ever an activity has large externality or spill over and includes a large number of people, it may be found better that government undertakes it. As David Hume once pointed out, it is easy for two persons to agree/bargain for terms of draining a field affecting them but it would be very difficult for a large number of persons to make the decision on terms of sharing cost of drainage.


Related Discussions:- Why does government undertake an economic activity

Valuation tools - related goods approaches, Normal 0 false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Cost-based methods - relocation cost, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

What are the consequences of government deficits, Question 1: Briefly (...

Question 1: Briefly (three or four paragraphs) give reasons for your answer. (a) In studying the public sector, economists should use either positive or normative economics

Financial deregulation - regulations and competition policy, Consider a cas...

Consider a case, if an insurance company merges with a bank. We know that insurance company bears risk for insurers. Suppose, after merger, bank gets in some trouble for reasons ot

Health Economics, 1.) In what way is insurance for medical loss/illness dif...

1.) In what way is insurance for medical loss/illness differ from insurance for any type of property loss?

Inflation vary from a cost-push inflation, Describe the basic process by wh...

Describe the basic process by which an economy moves by a business cycle.  What is meant by a demand-pull inflation?  How does a demand-pull inflation vary from a cost-push inflati

Examine essential elements of modern democratic societies, Question 1: ...

Question 1: Examine the essential elements of modern democratic societies. Question 2: State the various ways in which the participation of people is achieved in a demo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd