Ch01 INDIVIDUALS AND GOVERNMENT（课件）- 《财政金融英文版》同步教学（人民大学版）

INDIVIDUALS AND GOVERNMENT C h a p t e r 1 1 Allocation of Resources Resources are allocated between government and private use: For government use: Roads Schooling Fire Protection For private use: Food Clothing Units of private goods and services are forgone by individuals so that government can provide goods and services. Production Possibility Curve The Mixed Economy Characteristics of a mixed economy: Government supplies many goods and services Government regulates private economic activity Government expenditures equal ¼ to ½ of GDP Government participates in markets as a buyer of goods and services Circular Flow Government Expenditures in the U.S. Government purchases divert productive resources from private use: National defense Steel, labor Government transfer payments redistribute purchasing power among citizens: Social benefits Social Security, Medicare Government Expenditures, 1929–1950 Government Expenditures, 1951–1972 Government Expenditures, 1973–1989 Government Expenditures, 1990–2008 Government Expenditures in the U.S. Structure of Federal Government Expenditure Distribution of Federal Expenditures Structure of Federal Government Expenditure Structure of Federal Government Expenditure State and Local Government Expenditures State and Local Government Expenditures Financing Government Expenditures Federal Government—Taxes Financing Government Expenditures Financing Government Expenditures State and local governments—Taxes, Federal Grants Financing Government Expenditures Functions of Government Provide items we cannot easily make available for ourselves or purchase from others in markets Law enforcement and courts Redistribute income and economic opportunity Income support for elderly, unemployed, poor Stabilize economic fluctuations Inflation Regulate production and consumption For improved health, elimination of excessive monopolistic control over prices How much government is enough? How much should governments do,