Part III  Product and Factor Markets

Note: The Part III Introduction on the next page provides an overview which will be even more meaningful with a second reading upon the completion of Part III

Review chapter 6) Government's Economic Functions

1. Provide a legal atmosphere for capitalism

2. Insure competition (Chapter 32)

3.. Provide for an equitable distribution of income (Chapter 33)

4. Adjust for market failures (Chapters 30 and 31)

5. Affecting total economic activity (macroeconomics)

Chapter 30 Analyzing Public Sector Economic Activity

A. Demand for public goods

B. Accounting for externalities

C. Democracy and economic efficiency

D. An attempt to apply cost-benefit analysis to government regulation

Chapter 31 The Economics of Government Subsidies

A. The economics of government subsidies

B. Subsidizing agriculture

Chapter 32 Antitrust and Other Government Regulation

A. Understanding monopoly power

B. Antitrust laws

C. Antitrust prosecutions

D. The changing role of government regulation

Chapter 33 Distributing Income

A. Income statistics

B. Analyzing the distribution of income

C. Causes of income inequality

D. Understanding poverty

E. Effectiveness of government poverty programs

Visit the Almanac of Policy Issues for an overview of economic issues facing the United States.

Chapter 30