Managers, markets, and government’s role in the economy A

Managers markets, - Chapter 16 Final remarks Managers markets and governments role in the economy efficiency Unlimited wants and limited resources

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Chapter 16: Final remarks: Managers, markets, and government’s role in the economy efficiency: Unlimited wants and limited resources The objectives of this chapter are to: 1. Explain how the legal and regulatory system can contribute to the economic efficiency of markets. 2. Define market failure and describe the situations that give rise to market failure. 3. Explain how government intervention can reduce market failure. 4. Classify goods as pure private, pure public, marketable public or common resource, based on the characteristics of rivalry and excludability. 5. Define the tragedy of the commons. 1
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An economic system has to solve three coordination problems o I hope we answered those questions. o All economic knowledge can be boiled down to a single phrase: There ain’t no such thing as a free lunch. Opportunity cost o Every decision has an opportunity cost – the cost in foregone opportunities. 2
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o The production possibilities curve shows the trade-offs among choices we make. A production possibility table lists a choice's opportunity costs by summarizing what alternative outputs you can achieve with your inputs. The production possibility curve demonstrates that: o There is a limit to what you can achieve, given the existing institutions, resources, and technology. o
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This note was uploaded on 08/30/2011 for the course MGE 302 taught by Professor Isse during the Fall '08 term at SUNY Buffalo.

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Managers markets, - Chapter 16 Final remarks Managers markets and governments role in the economy efficiency Unlimited wants and limited resources

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