Chapter 1 B Flashcards
Positive statements?
What factors explain the actual conduct of government . (answer to this is called private interest approach)
it’s descriptive. explains things as they ARE.
What is normative?
What should the role of government be?
it says what gov SHOULD do.
How it OUGHt to be
Gov policy should do what?
seek to promote public interest.
Any normative rationale for policy must be based on these 4 Goals of government policy?
economic efficiency, macroeconomic stabilization and growth, fairness, other social objectives
What is economic efficiency?
trying to make the per capita benefits from consumption goods and services as high as possible.
What is macroeconomic stabilization and growth?
to smooth the business cycle. keep unemployment rates low. keep inflation rates low and stable. assist in promoting economic growth.
What is fairness (in terms of what gov is trying to pursue)?
maximizing the size of the pie for all individuals. creating equality!
Other social objectives (of gov policy) are what?
things that are not irectly linked to economic efficiency, macro economic stabilization, and fairness.
things like national unity and culture, limiting gambling and alcohol,
Also, creation of national parks, national defense.
What does the positive approach focus on?
the objectives, behaviors, and interactions that the policy affects.
Positive focuses on WHY.
POSITIVE = WHAT IS NORMATIVE= WHAT SHOULD BE
Why don’t positive and normative line up?
- Political self interest
- Lobbying intervention
- Faulty analysis
- third party based
- social groups pushing agenda (seniors)
Major policy areas? (6)
- international trade policy
- environmental policy
- competition policy
- price and entry regulation
- public enterprise an crown corporations
- macroeconomic stabilization policy and the public debt
