This involves the study of government policies and their impact on the economy, such as taxation, public spending, and budget management.
Public Finance: The study of the role of government and its impact on the economy, including taxation, spending, borrowing, and the effectiveness of these policies.
Fiscal Policy: The use of government spending and taxation to influence the economy, particularly in response to economic cycles.
Budgeting: The process of allocating resources, particularly financial resources, to achieve a particular set of goals.
National Debt: The total amount of money owed by a government, particularly in relation to its annual income or GDP.
Taxation: The process of collecting money from individuals and businesses to support government operations and programs.
Public Goods: Goods and services that are provided by the government and that benefit society as a whole, such as clean air and water, national defense, and public parks.
Externalities: The unintended consequences of economic transactions that affect people who are not directly involved in the transaction, such as pollution from production processes or traffic congestion.
Market Failures: Situations in which the market fails to allocate resources efficiently, such as when there is a monopoly or when there are negative externalities.
Public Choice Theory: The study of how individuals and groups make decisions in a political context and how these decisions interact to shape public policy.
Economic Growth: An increase in the production of goods and services over time, often measured by changes in GDP or per capita income.