FARE 3170 Lecture Notes - Lecture 1: U.S. Route 3, Externality, Ex-Ante

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 3170
• Professor: Rakhal Sarker

Document Summary

Week 1 january 9th to 11th, 2018. What happens when a proactive decision or reactive decision is made. The government get resources from tax payers, giving them the right to ask if the resources are spent wisely or not. Individuals have right to be knowledgeable about how resources are spe(cid:374)t a(cid:374)d if do(cid:374)(cid:859)t ag(cid:396)ee, ask the (cid:395)uestio(cid:374). Cost benefit analysis comes in govern spend resources, has role to play to explain to all the citizens. How the resources spend, where and how spending is going to lead to a greater good. The benefits of a competitive market are attainable only when certain conditions are satisfied. Many buyers and many sellers and the good is also homogenous. Free entry and exit not affecting the market outcome. If all these conditions are fulfilled, only then will the private sector operate efficiently and market mechanism will generate the greatest benefit from society point of view.