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What is public economics?
Public economics is a branch of economics that studies how public policies and the allocation of resources impact the distribution of income in the economy. In the United States, the public sector is responsible for about one-third of all economic activities. The government controls almost everything that we do in our daily lives. This control is sometimes for better and sometimes for worse. Any student looking to carve a niche in public economics must learn how to use economics tools for empirical analysis of taxation and spending activities of the government. Public economics strives to answer four fundamental questions:
- Should the government intervene in the economy?
- How and when should the government intervene?
- What is the effect of government intervention on the economic outcome?
- Why does the government intervene the way they do?
We are acquainted with the major concepts taught in public economics. Pay for public economics assignment help if you are struggling with understanding the following concepts:
Market failure: To address market failure that may arise, we must understand the role of the government in providing equitable and efficient markets. Public economics majors on the level of intervention that the government should consider to address market failures. Here are some of the examples of government intervention:
- Providing pure public goods: These goods boast two properties; non-excludability and non-rivalry. Not all public goods can be declared as pure, though. It is because some display some level of excludability and rivalry. The production of pure public goods needs government intervention. Without regulation, it is unlikely that the market will produce an efficient amount of such goods.
- Controlling negative externalities: Negative externalities can occur when the utility and production function of other firms are affected. Examples of negative externalities are noise pollution, air pollution, etc.
- Addressing imperfect market conditions: This market condition depends on the barriers to entry, profit objectives of firms, the nature of the product, and many more. Poor market conditions often lead to social costs. It is the role of the government to step in and reduce this cost.
Fiscal and monetary policy: Monetary policy encompasses all the actions taken by central banks to attain macroeconomic policy objectives like:
- Stable pricing
- Full employment
- Stable economic improvement
On the other hand, the fiscal policy focuses on the spending and tax policies of the federal government. In the US, Congress and the administration determine fiscal policy decisions. The concept of monetary and fiscal policy helps us understand the roles of both the federal government and the Federal Reserve.
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No topic or concept is too complicated for our public economics assignment helpers
If you are to ace your public economics assignment, then your paper should be handled by a prolific expert. We have assembled a team of public economics assignment helpers to assist our clients. You might be asking yourself, "Who are these experts?" Well, our team of professionals is made up of the following:
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Our public economics assignment doers have a proven track record of completing all tasks on time without compromising quality. They possess a wealth of knowledge of both elementary and advanced concepts of public economics, including:
Government taxation: Taxation is the financial obligation of citizens and residents of a country imposed by their government. Since ancient times, paying levies to government officials has been a mainstay of civilization. Taxation covers all types of involuntary levies, including:
- Estate taxes
- Capital gains
- Corporate taxes
- Income taxes
The government not only imposes taxation to raise revenue but also to control the economy. Our public economics assignment solvers have a thorough understanding of how governments tax their citizens and the impact of taxation on economic well-being.
Government expenditure: This refers to the money spent by the government to acquire goods and provide services such as social protection, education, defense, and healthcare. Government consumption spending is when the government gets goods for current use to satisfy its citizens' needs directly. On the other hand, when the government buys goods for future use, it is called government investment. The government mainly gets the money it spends from two sources:
- Collection of taxes
The government usually spends for the following reasons:
- Provide goods and services that the public sector cannot supply
- Improve the supply-side of the macro-economy
- Provide subsidies and relief to industries that need financial help
- Redistribute income and promote social welfare
There are two types of government expenditure:
- Current spending: This kind of expenditure is for the short term. Current spending can be on raw materials, wages and salaries of civil servants, etc.
- Capital spending: This type of government spending is for the long term. We shouldn't renew it every year. Capital spending is done on physical assets like roads, equipment, hospital buildings, bridges, etc.
The economic theory of redistribution: This is the systematic attempt by the government to redistribute wealth and income from some people to others. It is often done using social mechanisms such as taxation, monetary policies, confiscation, reforms, public services, etc. To redistribute wealth and income, a government can introduce programs such as:
- Food stamps
- Housing assistance
- Unemployment compensation
- Progressive income taxes
As we have already mentioned, our public economics assignment solvers can assist you with any topic. We can also tackle assignments based on the following topics:
|Capital taxation||Poverty and inequality||Measurement of welfare|
|Public debt||Cost-benefit analysis||Social insurance and security|
|Effects of poor taxation and government spending||Budget process||Equity and distribution|
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