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MARKET FAILURE VERSUS GOVERNMENT FAILURE
MARKET FAILURE VERSUS GOVERNMENT FAILURE

First quarter economic growth 0.9 percent in 2004
First quarter economic growth 0.9 percent in 2004

... and transport showed a slight recovery in production. Within manufacturing it was again the chemical industry that realised the largest increase. Production in the metal industry grew for the first time in two and a half years. Production was positively influenced across the board by the one extra w ...
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... information is to track the pace of economic betterment, or productivity growth, in the overall economy. • Example: if output grows by 5% following only a 2% increase in the quantity of inputs, then the overall rate of productivity growth would be roughly 3% (Increased efficiency) • Robust productiv ...
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chapter_1234_quiz1

... Government Failure – Government intervention that fails to improve economic outcomes. 3. Examples of government failures include: • Forcing an industry to clean up its pollution in a manner that is excessive. • Mandating pollution control technologies that are too expensive or even obsolete. • Impos ...
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Production for use

Production for use is a phrase referring to the principle of economic organization and production taken as a defining criterion for a socialist economy. It is held in contrast to production for profit. This criterion is used to distinguish socialism from capitalism, and was one of the fundamental defining characteristics of socialism initially shared by Marxian socialists, evolutionary socialists, social anarchists and Christian socialists.This principle is broad and can refer to an array of different configurations that vary based on the underlying theory of economics employed. In its classic definition, production for use implied an economic system whereby the law of value and law of accumulation no longer directed economic activity, whereby a direct measure of utility and value is used in place of the abstractions of the price system, money and capital. Alternative conceptions of socialism that don't utilize the profit system such as the Lange model involve the use of a price system and monetary calculation.The central critique of the profits system by socialists is that the accumulation of capital (""making money"") becomes increasingly detached from the process of producing economic value, leading to waste, inefficiency, and social issues. Essentially it is a distortion of proper accounting based on the assertion of the law of value instead of the ""real"" costs of the factors of production, objectively determined outside of social relations.
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