Government helps through organizations such as the US Department of Agriculture, FDA, etc. Objections to government involvement E. Imperfect Competition in Markets F. Macroeconomic Goals 1. Full employment 2. Price Stability 3. Economic Growth G. Income Distribution 1.
Markets affect income distribution.
Government works to redistribute income through taxes, subsidies, and transfer payments. There is no guarantee that the government will succeed where markets fail. B. Public choice theory is the application of economic principles to politics. C. Scarcity and competition are present in the public sector. D. Information is more costly because it is necessary to examine everyone s preferences rather than just an individual s.