Public Finance Chapters 1-7 Exam Study Guide with Complete Solutions

Public Finance Chapters 1-7 Exam Study Guide with Complete Solutions Public Finance - Correct Answer Field of economics that studies governmental activities and the alternative means of financing government expenditures Governments - Correct Answer Organizations formed to exercise authority over the actions of people who live together in a society and to provide and finance essential services Political Institutions - Correct Answer Rules and generally accepted procedures that evolve in a community for making collective decisions Private Goods and Services - Correct Answer Items such as food and clothing that are usually rival in consumption and are made available for sale in markets becasue people easily can be excluded from the benefits if they do not pay Government Goods and Services - Correct Answer Items provided by governments, such as roads, schooling, fire protection, that are not usually sold in markets Nonmarket Rationing - Correct Answer Rationing of goods and services by any means other than pricing Mixed Economy - Correct Answer One in which government supplies a considerable amount of goods and services and significantly regulates private economic activity Pure Market Economy - Correct Answer One in which all goods and services would be supplied by private firms and all exchanges of goods and services would take place through markets, with prices determined by free interplay of supply and demand. Government Purchases - Correct Answer Those that require productive services (land, labor, capital) to be diverted from private use by individuals and corporations so they can be used by government