Economics of Public Policy

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Daniel R. Lupu
ECN 4010

Economics of Public Policy Test 1

2. In thinking about a market economy and a regulated or planned economy, discuss the difference between “end-independent” rules or laws in society versus “end-dependent” rules or laws in society. In what ways would “end-dependent” rules or laws limit the use of knowledge by people in society, and how does “end-independent” rules or laws provide opportunity for people to use their different types of knowledge in society? (The distinction between “end-independent” and “end-dependent” rules or laws were discussed in class and in the article on, “Free Markets, the Rule of Law, and Classical Liberalism.”) The difference between “end-independent” laws and “end-independent” laws is very selfish. End independent laws are very unselfish and do not dictate that you do not do anything as long as it is within the confines of the law. An end dependent law dictates that you do not do something because it could be conceived as harmful to others. The end dependent law could limit the use of knowledge by making it illegal to do something such as teach your black slave to read. This is a clear demonstration of a selfish means to one’s ends. The power of government was used to make laws that made it illegal for black slaves to be taught to read, intentionally limiting the use of knowledge so that that they would remain subservient to white land owners. The laws requiring everyone to attend school until the age of majority are end independent because even though the individual is required to attend school he or she determines how much they want to learn and what they want to learn as long as they meet the minimum requirements of the state board of education.

3. In Power and Market, Murray Rothbard distinguishes between different types of government intervention: (a) Autistic Intervention; (b) Binary Intervention; and (c) Triangular Intervention. Explain the meaning of each and how they affect the...
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