The Government And Government Of Public Finance

1622 Words Sep 3rd, 2015 7 Pages
The branch in which we read thoroughly the contribution of the government in money related matters is known as public finance. In this branch we analyze the government and government expenditure of public authorities with the help of these we tries to achieve useful effects & discarding harmful effects. The initial point for accessing the public finance is the proper role of finance. Actually during special conditions private markets will distribute goods and services among people in a effective way. We want to achieve such conditions so that no waste occurs & we get what suits with our economy productive abilities in a special condition when private markets were able to provide good results and the division of money was socially desirable, in such case there would be no scope for the government. In most of the cases the rules for private markets efficiency are discarded for e.g. In a special condition when many people want same good at the same time .in this special case the private money market supply become too less to handle. The example non-rival consumption is National defiance. When private market does not distribute goods & services efficiently then there is market failure. The market failure gives collective or governmental provisions of goods and services, which is based on efficiency rational. The causes of market failures are public goods, informational advantages strong economies of scale and network effects. Government failure is term used for…
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