Economics of public finance & inflation

The objective of this book is to equip students with necessary skills and knowledge in the discipline of economics elementary theories of demand and supply and the theory of consumer behaviourthe theory of production national income analysis labour and unemployment public finance and inflation international trade and finance. The proper role of government provides a starting point for the analysis of public finance. In theory under certain circumstances private markets will allocate goods and services among individuals efficiently (in the sense that no waste occurs and that individual tastes are matching with the economy''s productive abilities). If private markets were able to provide efficient outcomes and if the distribution of income were socially acceptable then there would be little or no scope for government. In many cases however conditions for private market efficiency are violated. For example if many people can enjoy the same good (the moment that good was produced and sold it starts to give its utility to every one for free) at the same time (non-rival non-excludable consumption) then private markets may supply too little of that good.