宋利芳《经济学专业英语教程（第四版·上）》Unit 14.pptVIP

Unit FourteenText: Role of Government in the Economy（政府在经济中的作用） 1. Key words2. Improving economic efficiency3. Improving the distribution of income4. Stabilizing the economy through macroeconomic policies5. Conducting international economic policy6. Translate the following into Chinese7. Questions 1. Key wordsmixed economyeconomic efficiencymacroeconomic policylaissez-fairerights of propertycontagious diseasepublic goodsspillover effectneighborhood effectside effectthird partynegative externalitypositive externalityfree riderunregulated markethealth carepharmaceutical companyhousehold appliancesincome redistributioneconomic function welfare statemedical careprogressive taxationfinancial panicsbusiness cycleinternational stagebeneficial agreementtrade barriermanufactured goodsnational sovereignty as the price ofraising incomesintellectual property rightsforeign aideconomic interdependencedebt crisistightly integrated regionozone depletionglobal warmingspecies extinction 2. Improving economic efficiency2.1 Government assist in allocation of resources2.2 Reasons for government to override the resource allocation decisions 2.1 Government assist in allocation of resourcesA central economic purpose of government is to assist in the socially desirable allocation of resources. This is the microeconomic side of government policy; it concentrates on the what and how of economic life. Microeconomic policies differ among countries according to customs and political philosophies. 2.2 Reasons for government to override the resource allocation decisions2.2.1 The limits of the invisible hand2.2.2 Market failure 2.2.1 The limits of the invisible handThe invisible hand of perfect competition would lead to an efficient allocation of resources. But this invisible-hand result holds only under very limited conditions.Yet, if there were to be a division of labor among people and regions, and if a price mechanism were to work, government would have an important role. 2.2.2 Market failure