Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
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Question
Chapter 3, Problem 1QAP
(a)
To determine
Problems relating with government intervention.
(b)
To determine
Further effect of central planner’s interference on family choices.
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Q1: Write a short note on the following models of public policy. A)Rational Model B) Incremental Model C) Elitist Model, and D) Plural Model.
WHAT is an example of the government (laws) shaping the economy or vice versa?
Suppose that Gilberto, an economist from a business school in Georgia, and Juanita, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
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Chapter 3 Solutions
Macroeconomics
Ch. 3.1 - Prob. 1QCh. 3.1 - Prob. 2QCh. 3.1 - Prob. 3QCh. 3.1 - Prob. 4QCh. 3.1 - Prob. 5QCh. 3.1 - Prob. 6QCh. 3.1 - Prob. 7QCh. 3.1 - Prob. 8QCh. 3.1 - Prob. 9QCh. 3.1 - Prob. 10Q
Ch. 3 - Prob. 1QECh. 3 - Prob. 2QECh. 3 - Prob. 3QECh. 3 - Prob. 4QECh. 3 - Prob. 5QECh. 3 - Prob. 6QECh. 3 - Prob. 7QECh. 3 - Prob. 8QECh. 3 - Prob. 9QECh. 3 - Prob. 10QECh. 3 - Prob. 11QECh. 3 - Prob. 12QECh. 3 - Prob. 13QECh. 3 - Prob. 14QECh. 3 - Prob. 15QECh. 3 - Prob. 16QECh. 3 - Prob. 1QAPCh. 3 - Prob. 2QAPCh. 3 - Prob. 3QAPCh. 3 - Prob. 4QAPCh. 3 - Prob. 5QAPCh. 3 - Prob. 1IPCh. 3 - Prob. 2IPCh. 3 - Prob. 3IPCh. 3 - Prob. 4IPCh. 3 - Prob. 5IPCh. 3 - Prob. 6IPCh. 3 - Prob. 7IPCh. 3 - Prob. 8IPCh. 3 - Prob. 9IPCh. 3 - Prob. 10IP
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Similar questions
- explain why neglecting opportunity cost in policy-making can cause governments to make poor decisions.arrow_forwardUsing your own example explain how the macroeconomic objectives of a government might conflict.arrow_forwardEconomist Friedrich Hayek argued that when knowledge is decentralized and disbursed among many people: a. the greatr the share of knowledge the heads of firms and government can and must know to be successful b. the smaller the share of knowledge the heads of firms and government can know to be successful c. the greater the need for centralized, top-down planning within large firms and goverments d. the greater the need for firms and governments to avoid markets.arrow_forward
- Why couldn't an economy function without government intervention?arrow_forwardCould the economy function without government intervention?arrow_forwardIn Germany in 2009 there was considerable debate about the extent to which the government should be intervening in the economy. For example, its citizens were worried about the future of Opel, a German car brand that was part of the ailing General Motors. Some wanted the government to make sure jobs were saved no matter what. Others, however, were more hesitant and worried about becoming the government becoming too interventionist. Traditionally since the Second World War the German government has seen itself as a referee in market issues and has avoided trying to control parts of the economy. It would regulate anti-competitive behaviour, for example, but not try to run many industries. However in the recession of 2009 when the economy was shrinking the government was forced to spend more to stimulate demand and had to intervene heavily to save the banking sector from collapse. The government also had to offer aid to businesses to keep them alive.Questions1. What are the possible…arrow_forward
- Every modern society has a government of some sort, and every society has an economy as well. But how do the government and the economy intersect in society? That debate is prevalent in the United States today: how much influence should the government have on businesses, workers, and the economy? Some people say that the government should not have much influence on the economy—only the minimum necessary to ensure that society functions well. Others say that the government should ensure fair and equitable distribution of resources for all companies and workers. Still others say that the role of the government falls somewhere between those two extremes. You can start thinking about the intersection of government and the economy in the United States by considering your everyday life. From the time you get up in the morning until you go to bed at night, what contacts do you have with the government? Which of those contacts are related to the economy?arrow_forwardWhat sectors of the economy do you believe the government should take an increasing role, and what areas are they involved in you believe they should have a decreasing role? Why? Please back up replies with economic theory.arrow_forwardLocal government bans on plastic grocery bags due to environmental concerns have led to increased emergency room visits and deaths related to harmful bacteria such as E. coli, as many people do not wash their bags after each use. Which of the following best characterizes the statement? The statement demonstrates that even when government policies are enacted with good intentions, they do not always guarantee good outcomes due to unintended consequences and secondary effects. The statement demonstrates that normative economics is often confused with positive economics. The statement is an example of the fallacy of composition because all foods do not contain harmful bacteria. The statement shows that all environmental regulations have benefits that exceed the costs.arrow_forward
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