week 3 disussion Microecomic
asharpeIn Your own words.
Politicians have a strong incentive to follow a strategy that will enhance their chances of getting elected and re-elected. Political competition more or less forces them to focus on how their actions influence their support among voters and political contributors.
What is market failure, and what kinds of things can lead to market failure? What is government failure? Can government failure lead to market failure?
Review concepts like shortsightedness and rent seeking. What are the effects of government intervention in markets with some of the price regulations like price floors and price ceilings we discussed in chapter 4?
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