Competition in government is therefore both unusually powerful and unusually problematic. The question is not whether we like competition as a means of accommodating scarcity in things we desire but rather whether we would prefer an alternative procedure. But, as the process of biological evolution suggests, competition is more than a result of scarcity — it is also a means of successfully adapting to that condition.
These sentiments give a special lift to efforts at political cooperation, because politics is aspirational, always seeking to point the way to a better world.
Such consensus invariably changes over time, but in many important fields such as engineering and the health sciences it is demonstrably progressive — cumulating and improving rather than oscillating. The choices people make have both present and future consequences.
Our system also benefits from competition among the different levels of government. Rather, it means more of the kind of government citizens prefer. Since every choice made involves a trade-off, it also has a price.
Governors are experienced public executives. And to the extent that the courts take the dormant commerce clause seriously, the constitutional scheme is not, ultimately, a failure at all.
The second certain thing is that the course of policy in the financial and health-care sectors will be relatively undemocratic.
This is congressional delegation of the power to tax — a responsibility the Constitution specifically assigns to Congress. The latter are of course the hard decisions — the real lawmaking — but they provide abundant political opportunities of their own, especially when dispensed with freewheeling executive discretion.
Political arrangements, like commercial arrangements, involve relations among large numbers of strangers with common interests. Many of the problems and decisions we will face in life we have not previously encountered.
The executive agencies now exercise most of the domestic discretionary authority of the federal government. And if the terms of political cooperation include the disparagement of private commercial competition and the promise to make it, too, more cooperative — well, so much the better.
At the federal level, the separation of powers is being supplanted by unilateral executive government, with only intermittent, and usually inconsequential, oversight by Congress and the judiciary. For example, taking the next hour to study economics prevents us from using that hour to study another subject, work, sleep, etc.
Within every nation of every culture and political system, there is competition for basic needs like food, shelter, and sexual mates as well as competition for distinctively human goods such as honor, friendship, and power.The Fundamental Economic Problem: Scarcity and Choice Our necessities are few but our wants are endless.
INSCRIPTION ON A FORTUNE COOKIE the U.S. government has been agonizing over difficult budget decisions even though it spends more than two trillion dollars—that’s $2,,—annually.
Scarcity – the condition we face with limited resources to satisfy unlimited wants, which compels us to choose among alternatives. Economic growth raises standards of living, even in the continuing face of scarcity. policy is optimal. However, if asset market constraints bind, the behavior of the model is quite di⁄erent.
The binding asset market constraint imparts a liquidity premium to government bonds, and bonds bear a low real return to re⁄ect that. In general equilibrium, the asset market constraint binds because government bonds are in short supply.
Government Spending In many ways, the government faces these same choices. Citizens have collective wants and the government attempts to satisfy these wants through its spending. Social Security, health care pro-grams such as Medicare and Medicaid, and national defense are among the top federal spending categories.
A) Private firms face the constraint of scarcity; government does not. B) Government focuses primarily on equity; private firms focus only on efficiency. C) Private economic activities create externalities; government activities do not.
D) Government has the legal right to force people to do things; private firms do not. Macro Economics Exam 1 study guide by Gabe includes questions covering vocabulary, terms and more.
c. the government should deal with unemployment and inflation The Sultan of Brunei, one of the world's richest people, does not face the problem of scarcity.
a. True b. False. B. Opportunity cost is defined.Download