Fiscal Analysis

Front 1

MIXED ECONOMY

Back 1

economic activity is carreid on by both private enterpises and the government

Front 2

PRODUCTION POSSIBILITIES SCHEDULE

Back 2

traces the various amounts of two goods that can be produced efficiently with a given technology and resources.

Front 3

ECONOMIC MODELS

Back 3

attempts to depict the basic features of the economy

Front 4

POSITIVE ECONOMICS

Back 4

"what is" describes the economy, and construct models that predict either how the economy wil change or the effects of different policies

Front 5

NORMATIVE ECONOMICS

Back 5

refers to value judment as "what ought to be" attempts to evaluate alternative policies, wieghing up vaiorus benefits and costs.

Front 6

TRANSFER PAYMENTS

Back 6

payments that transfer money from one individual to another but not in return for the provision of goods or services

Front 7

UTILITY POSSIBILITIES CURVE

Back 7

traces out he maximum level of utility that may be achieved by two consumers

Front 8

PARETO EFFICIENCY

Back 8

property that no one can be made better off without someone being made worse off

Front 9

PARETO PRINCIPLE

Back 9

instituting any improvements that someone is made better but no one made worse off

Front 10

CONSUMER SOVEREIGNTY

Back 10

individuals ar ethe best judge of their own needs and wants, of what is in their own best interests

Front 11

PRODUCT MIX EFFICIENCY

Back 11

produce the goods that consumers want.

Front 12

MARGINAL BENEFIT

Back 12

satisfaction of consuming an extra unit

Front 13

MARGINAL COST

Back 13

the price paid for the extra unit either consumption or producing

Front 14

EXCHANGE EFFICIENCY

Back 14

goods produced go to individuals who value/want them most

Front 15

PRODUCTION EFFICIENCY

Back 15

an increase in production of one good leads to a decrease in production of another good

Front 16

MARGINAL RATE OF SUBSTITUTION

Back 16

slope of the indifference curve. nthe amount of one commodity which an individual is willing to give up in exchange for a unit of another commodity

Front 17

INDIFFERNCE CURVES

Back 17

gives the combo of goods among which an individual is indifferent or which yiel the same level of utility

Front 18

ISOCOST LINE

Back 18

different combo of inputs that cost the firm the same amount

Front 19

ISOQUANTS

Back 19

trace out the different comos of inputs that produce the same quantities of outputs

Front 20

MARGINAL RATE OF TECHNICAL SUBSTITUTION

Back 20

slope of the isoquant. the amount of land required to compensate for a decrease in the input of labor by one unit

Front 21

MARGINAL RATE OF TRANSFORMATION

Back 21

slope of the production possibilities schedule. tells us home many extra of one unit we can have if we reduce the production of another unit by one

Front 22

BUDGET CONSTRAINT

Back 22

gives the combo of goods that a consumer can by given income and price

Front 23

NATURAL MONOPOLY

Back 23

a situation where its cheaper for a single firm to produce the entire output than for each of several firms to produce part of it

Front 24

PURE PUBLIC GOOD

Back 24

a good that is nonrival and nonexcludable and is provide for users collectively,

Front 25

MARGINAL REVENUE

Back 25

extra revenue obtained from selling an extra unit and is equal to marginal cost

Front 26

RATIONING SYSTEM

Back 26

any method restricting consumption of a good

Front 27

FREE RIDER PROBLEM

Back 27

reluctance of individuals to contribute voluntarily to the support of public goods

Front 28

TRANSACTION COSTS

Back 28

costs associated with exclusion ex. toll collectors

Front 29

PUBLICLY PROVIDED PRIVATE GOOD

Back 29

large marignal cost associated with supplying additional individuals ex. education

Front 30

FEASIBILITY CURVE

Back 30

gives the maximum level of private goods consumption consistent with each level of public goods for our given tax system

Front 31

PUBLIC POLICY

Back 31

course of action made up of a series of decision, dicrete choices over a period of time

Front 32

POLITICS

Back 32

involves the "authoritative allocation of values

Front 33

GOVERNMENT

Back 33

the set of insitituion tha tmake these allocations, that resolve htese conflicts.

Front 34

INPUTS

Back 34

two types: suports and demands. Supports include overal support for political system, leaders, and acceptance of specific policies and demands are requests for action on part of the political system and feed direclty into the policy process

Front 35

OUTPUTS

Back 35

tangible and symbolic results of govenment decision

Front 36

OUTCOMES

Back 36

results of government outputs

Front 37

POLICY PROCESS

Back 37

consists of 8 stages: problem identification, agenda building, policy formation, polic adoption, budgeting, implementation, evaluation, policy succession

Front 38

PROBLEM IDENTIFICATION

Back 38

demands for government action to resolve a problem or take advantage of an opportunity: it is an attempt to get government to see that a problem or opportunity exists

Front 39

AGENDA BUILDING

Back 39

those items that policy makers are discussing and seriously considering. 3 streams problems: policies, and political

Front 40

PROBLEM STREAM

Back 40

problem identification stage

Front 41

POLICIES STREAM

Back 41

consists of both a community of policy specialist and the proposal thsi community generates

Front 42

POLITICAL STREAM

Back 42

composed of swings in national mood, changes in public opinion, election results, changes of administration, etc

Front 43

POLIC FORMULATION

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DEVELOP A PLAN TO REMEMDY THE PROBLEM

Front 44

POLICY GOAL

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what the government is trying to achieve: 4 generic goals: security, efficiency, equity, and liberty.

Front 45

5 GENERIC POLICY SOLUTION

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expected results of policy formulation is a solution to the problem: inducements, rules, facts, rights, and powers