COMM 394 Chapter 1-4: C394 Textbook Notes (Ch.1-4)
Document Summary
Government policy should seek to promote the public interest. Economic efficiency: trying to make the per capita benefits of consumption and services as high as possible. Macroeconomic stabilization and growth: to stabilize cyclical fluctuations. Fairness (equity): taxation, social welfare, universal healthcare etc. Other social objectives: national unity, culture (limitations on gambling & alcohol consumption) Focuses on the objectives, behavior and interaction of individuals and groups who influence policy decisions. Aims to explain why government policy takes the form it does. Macroeconomic stabilization policy and the public debt. The value of the best foregone alternative. Project should only be undertaken if their value exceeds the value of alternative projects. Added costs on any project leave us with fewer resources for alternatives. Projects/activities are only funded to the extent that benefits exceed opportunity costs. E. g: what is the value of a tuition-free higher education when compared to the value of an alternative project/service (healthcare, roads etc)
