Ecs3704 study guide 2022 - Study guides, Class notes & Summaries

ECS3704 STUDY GUIDE. In a perfect world - a limited role for government (“order functions”).  In the real world - a more comprehensive role for government. Why? In solving the economic problem the market fails in terms of  efficiency (Ch 2, 3 & 4)  equity (Ch 5)  Allocative efficiency (a normative approach)  measure is Pareto norm - where it is impossible to increase utility/output of one person/sector without reducing that of another,ie, utility (of consumers) is...