ECO-2000 Study Guide - Final Guide: Pork Barrel, Economic Planning, Influenza Vaccine
Document Summary
Thursday: may 1 7:30am in hwc 3100 final. #1 government promotes economic progress by protecting the rights of individual and supplying goods that cannot be provided through markets. Four sources of market failure: lack of competition, lack of information?, externalities- Gov. should tax negative externalities and subsidies positive externalities. Cleaning up on earth day- your getting the benefit of cleaning up and the people are happy too. Getting a flu shot- (cid:455)ou do(cid:374)"t (cid:449)a(cid:374)t to get it (cid:271)ut people benefit by not having to get sick from you. Pollution- saves company money, but pollutes world we live in. Mom watching me box, she only feels the hurt: public goods have two key characteristics: not the fun of it. Non rival in consumption: making a good available to one person does not reduce its availability to others fire work show for you and everyone else: you seeing it does(cid:374)"t i(cid:374)terfere (cid:449)ith (cid:373)e seei(cid:374)g it.
