4.3 - Market + Intervention Evaluation Flashcards
1
Q
What are the advantages of market oriented schemes?
A
Trade based on comparative adv.
Market efficiencies
Entrepreneurship
Resource allocation
2
Q
What are the disadvantages of market oriented schemes?
A
Inequality
Price Level
Monopoly threat
No direct health, education + infrastructure benefit
3
Q
What are the advantages of interventionist schemes?
A
Direct spending
Borrowing - Investment potential
Price + wage controls
4
Q
What are the disadvantages of interventionist schemes?
A
Large govt. sector
Crowding out
Deficit
Debt - Interest + cover
5
Q
What are the problems with an overly large govt. sector?
A
Inefficient
Bureaucratic
6
Q
What does it mean for a govt to be bureaucratic?
A
Important decisions made by state officials rather than elected representatives
