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Macroeconomics
The legal power of the government to intervene in the economy is limited only by the Constitution, the willingness of Congress to pass laws, and the willingness of the executive branch to enforce them.
Public Provision
National defense, the criminal justice system, the public schools, the interstate highway system, air traffic control, and the national parks are all examples of goods or service that are directly provided by governments in the United States. Public provision is the remedy for market failure to provide collective consumption goods, but it is also often used in the interest of redistribution and other social goals.
Redistribution and Social Insurance Programs
Taxes and spending often are used to provide a distribution of income that is different from that generated by the private market. The redistribution is accomplished through the dispersal...
These can include welfare payments, food stamp programs, aid to dependent children, etc. Additionally public scholarships, grants, some types of loan, farm subsidies are also forms of redistribution.
Proscriptive rules
Proscriptive rules take the form of laws, rules and regulations. They tell people and firms what they can and cannot do. Such rules require parents to send their children to school and to have them inoculated against measles and diphtheria. Laws that prohibit gambling and pornography attempt to enforce a particular moral code in the whole society. A particular component of these types of rules that directly intervene on the economy is the antitrust laws and policies.
Prescriptive rules
Prescriptive rules substitute the rule maker's judgment for the fir's or the household's judgment…
This is problematic, because it allows government waste and inefficiency to increase, which this makes it more difficult to: fire or layoff non-essential employees. As a result, there has been a concentrated effort to eliminate this power, in order to improve the state's ability to adapt to shifts in the economy. (Weitzman) However, many of the public employee unions and liberal Democrats have been fighting this law. The reason why,
In addition to core studies, optional programs are available throughout Alberta, including art, drama, music, career and technology studies, Aboriginal studies, and 16 different languages. Provincial tests tell authorities how well students have progressed in relation to achievement targets. Overall, the tests tell Albertans how well students are learning the Alberta curriculum and which areas of the curriculum need improvement. Provincial tests are designed as one indicator of how
Full creativity allows the production of greater wealth, for a stronger and more evolved society. Further in defense of the moral systems or perceived lack thereof in terms of newly created wealth, D'Souza asserts that most wealth currently created is the result of personal effort, rather than means such as inheritance. The wealth can then indeed be seen as the reward for effort, rather than wealth as a result of
Macroeconomics Comparative advantage is when someone is better at something than someone else. In the context of economics, it is typically applied to trade. For example, if two countries are trading, they should each produce the good at which they have comparative advantage. The overall production of two countries producing to their respective comparative advantage will be higher than if they both produced to their domestic demand. Key to understanding comparative
Business Economics The Limitations of the National Income Accounts in How They Represent Our Standard of Living The national income accounts have been the center piece in all matters concerning economics across the globe. These rules are a primary source of reference in determining the economic status of a given nation. It is the most preferred indicator of the rate of improvement and making comparison across nations. However, it is not
He focused on tariff reform in the Underwood-Simmons Act by arguing that high tariffs created monopolies and hurt consumers, pushed to end certain child labor practices, and above all tried to engender a fairer distribution of public funds for housing, utilities, and public projects (Wilson, 2011). However, looking back at his pre-World War I policies, it was his adamant work on currency and banking reform that seemed to have the