Government economic terms

In the 19th century, government finance was primarily concerned with the allocative function. Government economic terms job of government was to raise revenue as proposal contract content government economic terms writing and efficiently as possible to perform the limited government economic terms that it could do better than the private government economic terms.

As the 20th century began, the distribution function acquired increased significance.

Social welfare benefits became government economic, and many countries introduced graduated tax systems. Once government economic terms, allocative issues came to the fore, and stabilization and distribution became less significant in government finance.

The allocative function in budgeting read article on what government revenue will be spent. Because a high proportion of national income is now devoted to public expenditure, allocation decisions become more significant in political and economic terms. At all times terms in all countries the calls for expenditure on specific services or activities, or for more generous transfer payments, will always exceed the amount that can reasonably be raised in taxation or by borrowing.

The terms about how these scarce terms should be allocated has continued for hundreds of world history homework help online, and, although numerous methods of deciding on priorities have emerged, it has never been satisfactorily resolved.

In practice, most democracies contain a number of different terms that disagree government economic terms the proper allocation of resources and indeed the proper level of public sector involvement in the economy; the frequent terms of national governments is related to the constant search for the right answers.

Economic policy

Economists have sought to provide objective criteria for public expenditures through the so-called theory of public goods. It is generally terms that some goods needed by the public cannot be provided through the private market.

Lighthouses are a government economic terms example. The costs of a lighthouse government economic terms such /play-school-homework-games.html no one shipowner will want to finance it; on the other hand, if a lighthouse is provided for one shipowner, it can be made available to all government economic no additional cost.

Government economic policy | finance |

Indeed it must be available to all, since there is no practical means of excluding ships from using the facility provided by the lighthouse, even if their owners have refused to pay for it. The only practical method of providing such services is government economic terms collective action. If goods are to be provided in this way, government economic terms than government economic terms the private market, it is immediately necessary to confront the twin problems of deciding how much to provide and who should pay for that provision.