ECON 2 Lecture Notes - Lecture 26: Environmental Law, Government Spending, Opportunity Cost
27 Aug 2020
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Government activity designed to improve market activity. Enforce laws and act as an arbitrator. Other- education, transportation and communication, housing, environment, foreign aid. By international standards, canadians are not overly taxed. Socialist idea equal distribution of income overrides the decision of the market. Many economists use progressive taxes and transfer payments to reduce income inequality. Canadian economy blends private and public ownership, with some government influence over the workings of markets. Resources are limited (scarce) necessity of choices. Opportunity cost = value of the best forgone alternative. What to do about the federal budget balance. From 1997/98-2006/7, the federal government accumulated surpluses of about billion. Use the surplus to reduce public debt. Spend the surplus through a tax cut. Over the last decade, governments have chosen a mixture of these, with lower taxes, greater spending in some areas and debt reduction. Everyone must make choices in the economy, particularly since physical and financial resources are never unlimited.
