Role of the State in Market Economy

This lecture discusses the role of the state in a market economy, where the automatic mechanism of the market may not work effectively for certain goods and services. It explores how the state intervenes to ensure optimal resource allocation, income redistribution, and economic stabilization. The lecture covers concepts like mixed market economy, allocation decisions, public expenditures, taxes, and monetary policy. It also delves into consumer theory, preferences, utility functions, and indifference curves. The presentation concludes with insights on consumer optimization, income-consumption curves, and price-elasticity of demand.