The Economics of Government

This book contains all information from economics the relationship between government and private markets. Most of the book examines government’s interference in the markets. However, towards the end of the book, several chapters are dedicated to the government’s interference of the whole economy. All economic analysis uses introductory economics. It is also assumed students have been exposed to introductory micro and macroeconomics.

Three review chapters have also been included. These chapters provide a review of supply, demand, and a market, production cost functions, and the aggregate demand and supply functions. These chapters are placed before chapters that use the necessary material.

This book, furthermore, has a broad appeal to all college majors and educated people, especially to students who reside outside the United States. Many names of the U.S. government agencies were removed and replaced by the generic label U.S. government. The purpose is to focus on economics and market behavior, and not test students’ knowledge of U.S. institutions.

In this book, it is argued that the type of political system is not important. For instance, communism in Russia did not fail, because of communism; it failed because the government tried to control all its markets. Thus, the same disastrous failure would occur if a republic tried to control all of its markets. The importance is how government defines its relationship between government institutions, markets, and the people.

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