Should Governments always intervene to correct market failures?
Justify and explain your answer, with reference to two types of
market failure. (500 words minimum)
Many policy analysts believe that government should only
intervene when market failures exist. The readings and class
discussion discuss several different types of market failures that
provide rationales for why government provides a wide range of
goods and services. For each of the following, describe the
rationale(s) that support government intervention Be as specific as
possible and use the terms and concepts to identify one or more
rationales for each government action:
a. Federal government requiring nutrition labels on...
1. In general, what are some of the tactics the government uses
to correct market failures? List 3 and
provide a brief explanation of the opportunity
costs involved in correcting these failures.
2. Briefly discuss the key difference(s) between Keynesian
Economics and Neoclassical Economics.
In attempts to correct market failures, a government policy is
proposed. Assume that the costs of a potential new government
program will be paid now by many individuals. The benefits will be
received by a relatively small number of individuals several years
in the future. Why might these conditions affect a government's
success or failure in attempting to decide whether or not to
establish the new program?
Why does the government intervene in the economy? Should they
and what would the impact be if they did not? PLEASE USE OUTSIDE
RESEARCH for this discussion not just the text -- at least one
additional source.
What are search goods, experience goods and post-experience
goods?
Should the government intervene to reduce the information
asymmetry on search goods, experience goods and post-experience
goods?
Please explain.