Lecture 1: Introduction Flashcards
1
Q
Indirect effects of government interventions
A
effects that only arise because individuals change their behaviour in response to the interventions
2
Q
Public economics
A
Role of the government and the public sector in the economy
3
Q
Market failures
A
- Externalities
- Imperfect competition
- Imperfect/asymmetric information
- individual failures
4
Q
Positive economics
A
Analysis of how things really are (empirical)
5
Q
Direct effects of government interventions
A
Effects which would be predicted if individuals did not change their behaviours in response to the interventions
6
Q
Levels of government
A
- Central Government
- Sub-central government
- decentralized government
7
Q
When should the government intervene in the economy?
A
- Market failures
- Redistributions
8
Q
Normative economics
A
Analysis of how things should be (theoretical)
9
Q
Political economics
A
Theory of how political processes produces decisions that affect individuals and the economy
