Overview
Public economics is a vital field that examines how government policies influence economic behavior and welfare. It addresses issues like market failures, public goods, and taxation, providing insights into how resources can be allocated more efficiently. Understanding these concepts helps in evalua...
Key Terms
Example: Pollution is a market failure because it affects third parties.
Example: National defense is a public good.
Example: A factory polluting a river affects local fishermen.
Example: The burden of a sales tax may fall on consumers or producers.
Example: Welfare economics evaluates the social welfare implications of policies.
Example: Utilitarianism suggests policies that benefit the majority.
Related Topics
Key Concepts
Market FailurePublic GoodsTaxationWelfare Economics