Explain why each may cause the market outcomes to be inefficient. How can the failures be resolved or addressed through government policy?

Explain why each may cause the market outcomes to be inefficient. How can the failures be resolved or addressed through government policy?

Directions: Please write a paper that is at least two pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Please utilize the LIRN library to help you get started with your research. You may visit the Academic Resource Center for a guide on how to utilize the LIRN library successfully.

1. Name two types of market failure and provide specific examples. Explain why each may cause the market outcomes to be inefficient. How can the failures be resolved or addressed through government policy? What role does the government play in successful economies? What happens with too little or too much government interference?

You can look at the United States economy, but to completely address the question, be sure to look at information for several other countries besides the U.S. Relate this work to what you have learned this week about tax policy and what you read in Modules 1 and 2 about healthy markets.

PART II

1. Please refer to the article that you read as the Required Web Resource for this module. After reviewing Romer and Romer’s paper, The macroeconomic effects of tax changes: Estimates based on a new measure of fiscal shocks, published by The National Bureau of Economic Research, write a paper with at least one reference indicating whether you concur or do not concur with the authors on the macroeconomic climate and tax policy. Be sure to clearly indicate your position and then find sources to back up your theories. Your submission must be at least two to three pages in length and in APA format with at least one scholarly citation. Please utilize the LIRN library to help you get started with your research. You may visit the Academic Resource Center for a guide on how to utilize the LIRN library successfully.


 

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