TAILIEUCHUNG - Lecture Macroeconomics (20/e): Chapter 5 - McConnell, Brue, Flynn

Chapter 5 - Government’s role and government failure. This chapter will discuss how government’s power to coerce can be economically beneficial; difficulties associated with managing and directing the government; and government failure and why it happens. | Chapter 5 Government’s Role and Government Failure Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. This chapter will discuss how government’s power to coerce can be economically beneficial; difficulties associated with managing and directing the government; and government failure and why it happens. Government’s Economic Role Government’s right to coerce Force and economic efficiency Correcting for market failures Positive externalities Negative externalities Reducing private-sector economic risks LO1 The government’s ability to force people to do things can be used to increase economic efficiency. When it comes to both public goods and products offering positive externalities, the government can improve economic efficiency by using involuntarily collected tax money to subsidize production. Products that generate negative externalities are overproduced by the private sector. .

• Kinh tế học
• Lecture Microeconomics
• Economic problem
• Economic principles
• Economic policies
• Government’s role
• Government failure
• Microeconomics theory
• Microeconomics applications
• Kinh tế vĩ mô
• Scope of microeconomic theory
• Normative analyses
• Demand curves
• Supply curves
• Consumer choice
• Theory of consumer choice
• Consumption choices
• Substitution effects
• Consumer choice theory
• Excise subsidies
• Economic efficiency
• Competitive equilibrium
• Relating output to inputs
• Empirical estimation
• Cost of production
• Shortrun cost
• Profit maximization
• Perfectly competitive markets
• Competitive model
• Excise taxation
• Monopolist’s demand
• Marginal revenue curves
• Product pricing
• Monopoly power
• Monopolistic competition
• Cournot model
• Game theory
• Economics of information
• Noncompetitive market models
• Iterated dominance
• Input demand curve
• Leisure choice
• Wage rates
• Minimum wage
• Hidden costs
• General equilibrium analysis
• Public goods