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KEY QUESTION: When are markets unable to satisfy important economic objectives — and does government intervention help?
KEY QUESTION: When are markets unable to satisfy important economic objectives — and does government intervention help?
Public goods, the free rider problem & government responses
Public goods, the free rider problem & government responses
Theory of Knowledge Connections
Theory of Knowledge Connections
- Microeconomic theory is based on the assumption of rational consumer choice and rational self- interest. Yet the principle of collective self-governance suggests that people also behave cooperatively. What assumptions do economists make about the roles of reason and emotion? Are these assumptions justified?
- How can we know when a problem is sufficiently large to justify government intervention?
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