1 / 56

Government Policy and Market Failures

Laugher Curve. Q.How many economists does it take to screw in a light bulb?A.Eight. One to screw it in and seven to hold everything else constant.. Introduction. Economists use the invisible hand framework to determine whether the government should intervene in the market.Invisible hand framewor

poppy
Télécharger la présentation

Government Policy and Market Failures

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Government Policy and Market Failures Chapter 18

    2. Laugher Curve Q. How many economists does it take to screw in a light bulb? A. Eight. One to screw it in and seven to hold everything else constant.

    3. Introduction Economists use the invisible hand framework to determine whether the government should intervene in the market. Invisible hand framework perfectly competitive markets lead individuals to make voluntary choices that are in societys interest.

    4. Market Failures Market failure the invisible hand pushes in such a way that individual decisions do not lead to socially desirable outcomes.

    5. Market Failures When a market failure exists, government intervention into markets to improve the outcome is justified.

More Related