MGEA02H3- Midterm Exam Guide - Comprehensive Notes for the exam ( 12 pages long!)

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEA02H3
• Professor: Jack Parkinson

Document Summary

Mgea02 introduction to microeconomics: a mathematical approach. Topic 11 (week of nov 21) market failures (externalities & public goods) Coverage: so far in this course, it may seem that governments play a minor role in the economy; in fact, the role of governments, through taxation, laws, regulations, and direct expenditures is very large. All too briefly, we examine two major classes of arguments that suggest that a market economy may not work well and that we may benefit from an important degree of government intervention into the economy. The first of these is the case of public goods goods that are consumed collectively, rather than individually, and where excluding additional consumers is infeasible. Externalities ; goods that are consumed by individuals, but where there are effects on others. Do all the check your understanding questions within the parts of the text in the assigned readings. Answers for these are at the back of the textbook.