Using Nova Scotia province (Canada) as the example of the provincial government. Governments have a list of tools that they can use to deal with one of the seven economic reasons for intervening in the economy. Please list ten different government tools that government can use to intervene in the economy, identify a program/initiative/tax delivered by the Provincial government you are assigned that corresponds to each tool, the economic reason for each of the ten interventions, and which of the two objectives under Welfare Economics, efficiency, or equity, is the reason for each intervention. Tools of government include 

1. Taxation 

2.Expenditures 

3.Loans and loan guarantees 

4.User charges 

5.Public ownership 

6.Performance based regulation 

7.Standardsand contracts 

8.Persuasion 

9.Legal 

10.Insurance 

11.Regulations 

There are seven economic rationales for government intervention based on the two objectives under Welfare Economics

• The failure of competition –market power

•Incomplete markets –non existence of markets

•Externalities

•Public goods 

Each listing comprising the name of the tool used by the government, the name of the program, the reason for the intervention and the correct objective under Welfare Economics will be worth 9%, each component being worth 2%and if all four components in each row are correct an extra 1%.

Answer rating: 100% (QA)

ANSWER 1 Taxation The government can use taxation as a tool to intervene in the economy by implementing taxes on certain goods or services One example of this is the carbon tax that the provincial gov... View the full answer