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Unformatted text preview: produced in the economy. Questions: Why do we demand government goods and services? • Government provides individuals with items not available in markets • Income distribution 1 • Externalities • Public goods How much government is enough? • Trade-off between efficiency and equity • Balance costs and benefits of government intervention 3. Topics • Efficiency • Market success • Market failure: externalities • Market failure: public goods • Income distribution • Income taxation 2...
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- Fall '06
- J Liu
- Economics, Economics terminology, Private Goods and Services, Government expenditure accounts