ECON 2000 Chapter : Ch 4 Outline

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15 Mar 2019
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Know the nature and causes of market failure: 04-02. Know how the public sector has grown: 04-03. Know which taxes finance state, local, and federal governments: 04-04. Ppc (mix of output: market failure establishes a basis for government intervention, specific sources of market failure are, public goods, externalities, market power, inequity. If i don"t pay taxes i am still getting the benefit of: we don"t really want to distribute when they pass the hat , groovin" on the grounds, we can"t really exclude you. They pay for it because they essentially make you pay taxes: there is an issue with the market when we cannot match the payment and people receiving the benefit. A two-party (buyer and seller) transaction occurs, but there are costs (or benefits) borne by a third party. The difference between the social and private costs (benefits) of a market activity.

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