Chương 4 Chính phủ trong nền kinh tế hỗn hợp ppt

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Chương 4 Chính phủ trong nền kinh tế hỗn hợp ppt

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Chapter 4 Government in the mixed economy David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000 Power Point presentation by Peter Smith 4.2 What do governments do? ■ create laws, rules and regulations ■ buy and sell goods and services ■ make transfer payments ■ impose taxes ■ try to stabilize the economy ■ affect the allocation of resources 4.3 Government spending 0 10 20 30 40 50 60 % of national income 1880 1929 1960 2000 The scale of government activity has grown steadily in industrial countries since 1880 Japan USA Germany UK France Sweden 4.4 What should governments do? ■ Governments may be justified in intervening in the economy in the presence of market failure ■ Six ways in which intervention may improve the allocation of resources: 4.5 What should governments do? ■ (1) The business cycle – decisions on taxation and spending may affect the business cycle – not always favourably ■ (2) Public goods – goods that, even if consumed by one person, are still available for consumption by others – e.g. clean air – the free-rider problem prevents the market from achieving production of the “right” amount of such goods. 4.6 What should governments do? ■ (3) Externalities – costs and benefits of production are not always reflected in market prices ➡ e.g. pollution, congestion. ■ (4) Information-related problems – private markets may not produce the “right” kinds and amounts of information ➡ e.g. food labelling, health and safety regulations. 4.7 What should governments do? ■ (5) Monopoly and market power – resource allocation may be improved by limiting or regulating the market power of monopoly firms ■ (6) Income redistribution and merit goods – concern with equity issues ➡ e.g. protecting vulnerable groups – merit goods are goods that society thinks people should consume regardless of income ➡ e.g. health, education 4.8 Who pays a commodity tax? D S S Q 0 P 0 Quantity Price With no tax, market equilibrium is at P 0 , Q 0 S' S' Q 1 P 1 With the tax, supply is S'S' and equilibrium is P 1 Q 1 …but who pays the tax? 4.9 C Area C is a welfare loss. B Area B is borne by producers A Area A is borne by consumers Who pays a commodity tax? D S S S' Q 1 Q 0 P 0 P 1 S' The incidence of the tax depends upon the elasticities of demand and supply. . Chapter 4 Government in the mixed economy David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000 Power Point presentation by Peter Smith 4. 2 What do. payments ■ impose taxes ■ try to stabilize the economy ■ affect the allocation of resources 4. 3 Government spending 0 10 20 30 40 50 60 % of national income 1880 1929 1960 2000 The scale of government activity. activity has grown steadily in industrial countries since 1880 Japan USA Germany UK France Sweden 4. 4 What should governments do? ■ Governments may be justified in intervening in the economy in

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Mục lục

  • Chapter 4 Government in the mixed economy

  • What do governments do?

  • Government spending

  • What should governments do?

  • Slide 5

  • Slide 6

  • Slide 7

  • Who pays a commodity tax?

  • Slide 9

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