The Role of Government
FYSEMR 42C
Subject & Catalog Number
Course Information
Description
Economists have a very positive view of the role of markets. The intellectual foundations of this are the first and second theorems of welfare economics. The purpose of the seminar is to introduce the students to these results but also to their limitations. Most economists think that market outcomes will fail to be efficient in the presence of large-scale externalities/public goods, and government intervention is then justified.
Examples are national defense, clean air, and the mother/father of them all: global warming resulting from carbon emissions. Another very topical issue is inequality. There is no particular reason to think that a market economy will yield an equitable distribution of income, and given this what is the appropriate government response?
Throughout the seminar the analysis of ideas and concepts will be interspersed with policy issues such as whether and what limitations should be placed on the right to smoke or consume drugs, the right to marry, and the right to buy and sell organs. We will also consider the pros and cons of affirmative action, the Affordable Care Act (Obamacare), free trade, and immigration.
NOTE: Recommended Preparation - Students should have taken Economics 10A or more advanced in fall term or already have an equivalent qualification.
Class Notes
First-Year Seminars are available only to first-year students. You may apply to both Fall 2026 and Spring 2027 First-Year Seminars via the FYS lottery between July 6 and August 6, 2026 at 11:59PM-midnight.
You may apply to as many seminars each term as you would like, but we recommend you apply to at least six in fall and three in spring.
As part of your application, you must provide a brief statement on why you are interested in each seminar. You will be notified of lottery results for both fall and spring seminars at 5 pm on August 11. If you are unsuccessful in the lottery, you may still join any seminar with open seats. A list of open seminars and instructions on next steps will be available on the First-Year Seminar Program website August 11 at 12 Noon.
Not Available for Cross Registration
