Stabilization Policy: Budgetary policy has its own bearing on the performance of a national economy. That is on targets such as high employment, a reasonable degree of price stability, soundness of foreign accounts and an acceptable rate of economic growth. These macro targets cannot be materialized automatically. But it requires deliberate and well planned policy guidance and packages. In the [...]
1. Private Goods: Private goods are those goods which yield utility only to the person consuming the good. Only the person who drink a cup of tea for example benefit from the consumption of that cup of tea. The cup of tea consumed by one person cannot be consumed by anyone else. Therefore private goods are those goods, the consumption [...]
This article throws light upon the top three approaches to public goods allocation. The approaches are: 1. The Marginal Utility Approach of Public Goods Allocation 2. Voluntary Exchange Approach 3. Samuelson’s Approach to Public Goods Allocation. 1. The Marginal Utility Approach of Public Goods Allocation: Professor A. C Pigou has made a heroic attempt to reconcile the benefit and ability [...]