Chapter 5: Public Choice
Contrast decision making in the private and in the public sector:
Role of prices, which transmit information from consumers to producers
and from producers to consumers.
Equilibrium allocation is Pareto e cient (se
Chapter 9: Taxation and Economic E ciency
All taxes aect economic behavior (ex.: consume less)
No matter how individuals adjust, they are worse o when taxes increase (abstracting from expenditure side)
Some taxes reduce individualswelfare by lower amount
Chapter 8: Tax Incidence
Who should pay for the cost of government in general or of a particular
Important question. Example: Social security contributions paid in
part by worker and in part by employer.
Should distinguish between
those on whom t
Chapter 6: Public Production and Bureaucracy
Public intervention may be required when market failure.
Contrast public nancing and public provision.
For certain goods, we observe mainly public provision: army, school,
Two main reasons:
and the Internal
Define management and the three types of
skills necessary for managerial success.
Explain the role of vision and ethical
standards in business success.
Explain the importance of
international business and the
main reason nations trade.
Discuss the relationship of
absolute and comparative
advantage to international trade.
Describe how nations measure
Options for Organizing
Small and Large
Distinguish between small and large businesses
and identify the industries in which most small
firms are established.
Discuss the economic and social contributions