經(jīng)濟學(xué)專業(yè)英語教程（第四版-上）課件：Role of Government in the Economy

《經(jīng)濟學(xué)專業(yè)英語教程（第四版·上）》

Text:RoleofGovernmentintheEconomy（政府在經(jīng)濟中的作用）1.Keywords2.Improvingeconomicefficiency3.Improvingthedistributionofincome4.Stabilizingtheeconomythroughmacroeconomicpolicies5.Conductinginternationaleconomicpolicy6.TranslatethefollowingintoChinese7.Questions1.Keywordsmixedeconomyeconomicefficiencymacroeconomicpolicylaissez-fairerightsofpropertycontagiousdiseasepublicgoodsspillovereffectneighborhoodeffectsideeffectthirdpartynegativeexternalitypositiveexternalityfreeriderunregulatedmarkethealthcarepharmaceuticalcompanyhouseholdappliancesincomeredistributioneconomicfunctionwelfarestatemedicalcareprogressivetaxationfinancialpanicsbusinesscycleinternationalstagebeneficialagreementtradebarriermanufacturedgoodsnationalsovereigntyasthepriceofraisingincomesintellectualpropertyrightsforeignaideconomicinterdependencedebtcrisistightlyintegratedregionozonedepletionglobalwarmingspeciesextinction2.Improvingeconomicefficiency2.1Governmentassistinallocationofresources2.2Reasonsforgovernmenttooverridetheresourceallocationdecisions2.1GovernmentassistinallocationofresourcesAcentraleconomicpurposeofgovernmentistoassistinthesociallydesirableallocationofresources.Thisisthemicroeconomicsideofgovernmentpolicy;itconcentratesonthewhatandhowofeconomiclife.Microeconomicpoliciesdifferamongcountriesaccordingtocustomsandpoliticalphilosophies.2.2Reasonsforgovernmenttooverridetheresourceallocationdecisions2.2.1Thelimitsoftheinvisiblehand2.2.2Marketfailure2.2.1ThelimitsoftheinvisiblehandTheinvisiblehandofperfectcompetitionwouldleadtoanefficientallocationofresources.Butthisinvisible-handresultholdsonlyunderverylimitedconditions.Yet,ifthereweretobeadivisionoflaboramongpeopleandregions,andifapricemechanismweretowork,governmentwouldhaveanimportantrole.2.2.2Marketfailure

2.2.2.1Definitionofmarketfailure2.2.2.2Situationsofmarketfailure2.2.2.1DefinitionofmarketfailureMarketfailureisasituationinwhichpricesystembringsaboutsomeproblemstothesocietyorcannotreachthesocialtarget.2.2.2.2Situationsofmarketfailure(1)Thebreakdownofperfectcompetition(2)Externalitiesandpublicgoods(3)Imperfectinformation(1)ThebreakdownofperfectcompetitionWhenmonopoliesoroligopoliescolludetoreducerivalryordrivefirmsoutofbusiness,governmentmayapplyantitrustpoliciesorregulation.(2)ExternalitiesandpublicgoodsAnexternalityisacostorbenefitimposedonpeopleotherthantheconsumersandproducersofagoodorservice.Externalitiesarealsocalledspillovereffectsorneighborhoodeffects.Externalitiesmaybeeithernegativeorpositive;thatis,theymaybedetrimentalorbeneficial.Apublicgoodisagoodorservicethat,onceproduced,hastwoproperties:oneisthatuserscollectivelyconsumebenefits,andtheotheristhatthereisnowaytobarpeoplewhodonotpay(freeriders)fromconsumingthegoodorservice.So,ifpublicgoodsareavailableonlyinthemarketplace,peoplewaitforsomeoneelsetopay,andtheresultisanunderproductionorzeroproductionofpublicgoods.Governmentmayuseitsinfluencetocontrolharmfulexternalities.Governmentcanlevytaxesonactivitieswhichimposeexternalpubliccosts,oritcansubsidizeactivitieswhicharesociallybeneficial.(3)ImperfectinformationUnregulatedmarketstendtoprovidetoolittleinformationforconsumerstomakewell-informeddecisions.Becauseofinadequateinformation,thegovernmentrequirescompaniestoprovideinformation.Inaddition,governmentmayuseitsspendingpowertocollectandprovideneededinformationitself.3.ImprovingthedistributionofincomeEvenwhentheinvisiblehandworksandismarvelouslyefficient,itmayatthesametimeproduceaveryunequaldistributionofincome.Incomeredistributionisusuallyaccomplishedthroughtaxationandspendingpolicies,thoughregulationsometimesplaysaroleaswell.4.StabilizingtheeconomythroughmacroeconomicpoliciesTodaygovernmenthastheresponsibilityofpreventingsuchcalamitousbusinessdepressionsbytheproperuseofmonetaryandfiscalpolicy,aswellascloseregulationofthefinancialsystem.Inaddition,governmenttriestosmoothouttheupsanddownsofthebusinesscycle,inordertoavoideitherlarge-scaleunemploymentatthebottomofthecycleorragingpriceinflationatthetopofthecycle.5.Conductinginternationaleconomicpolicy5.1Reducingtradebarriers5.2Conductingassistanceprograms5.3Coordinatingmacroeconomicpolicies5.4Protectingtheglobalenvironment5.1ReducingtradebarriersAnimportantpartofeconomicpolicyinvolvesharmonizinglawsandreducingtradebarrierssoastoencouragefruitfulinternationalspecializationanddivisionoflabor.5.2ConductingassistanceprogramsRichnationshavenumerousprogramsdesignedtoimprovethelotofthepoorinothercountries.Theseinvolvedirectforeignaid,disasterandtechnicalassistance,theestablishmentofinstitutionsliketheWorldBanktogivelow-interest-rateloanstopoorcountries,andconcessionarytermsonexportstopoornations.5.3CoordinatingmacroeconomicpoliciesNationshavefoundthattheirincreasedeconomicinterdependencemeansthatmacroeconomicpoliciesmustbecoordinatedtocombatinflationandunemployment.Exchangeratesdonotmanagethemselves;establishingasmoothlyfunctioningexchange-ratesystemisaprerequisiteforefficientinternationaltrade.Nationshaveseenthatfiscalandmonetarypoliciesofothernationscanaffectdomesticeconomicconditions.5.4ProtectingtheglobalenvironmentClearly,internationalenvironmentalproblemscanberesolvedonlythroughthecooperationofmanynations.Eventhestaunchestconservativesagreethatgovernmenthasamajorroletoplayinrepresentingthenationalinterestintheanarchyofnations.6.TranslatethefollowingintoChinese(1)Ifalltheseidealizedconditionsweremet,theinvisiblehandcouldprovideperfectlyefficientproductionanddistributionofnationaloutput,andtherewouldbenoneedforgovernmentinterventiontopromoteefficiency.(2)Courtsandpoliceforceswouldbeneededtoensurefulfillmentofcontracts,nonfraudulentandnonviolentbehavior,freedomfromtheftandexternalaggression,andthelegislatedrightsofproperty.(3)Todaygovernmenthastheresponsibilityofpreventingsuchcalamitousbusinessdepressionsbytheproperuseofmonetaryandfiscalpolicy,aswellascloseregulationofthefinancialsystem.(4)Governmentnowplaysacriticalrolerepresentingtheinterestsofthenationontheinternationalstageandnegotiatingbeneficialagreementswithothercountriesonawiderang