QUESTION 1: Do the aims of the law always align with good economic outcomes? Can they conflict with one another? Give examples to back up your arguments.
QUESTION 2: Give a definition of the word "institutions". Explain why countries that have weak property rights may not always try to reform them in order to promote economic growth. NZ is regarded as having high quality institutions so could there be another reason why our economic growth has been disappointing compared to other OECD countries?
QUESTION 3: Assuming property rights are defined over all goods & services and no market failures exist, can free markets achieve a welfare optimum? Choose one market failure and explain how it could be potentially corrected by a government regulation. Could it still not be beneficial to attempt such an intervention?
