Finance Test 1
- University of Maryland - College Park
- Public Management And Policy
- Public Management And Policy Puaf670
- Finance Test 1
Last Modified: 2011-06-30
A measure of the relative change occurring in a category of prices compared with a base period.
Once the good is produced no one can be excluded from using it.
Situations in which individuals not part of a transaction are affected by the transaction.
A situation in which as a result of producing a good or service, someone is negatively affected by the production process, but the producer does not pay the cost of that effect.
A theoretical description of the amount of enjoyment an individual receives from certain actions (consumption, saving, etc.)
2. Public Safety
3. Macroeconomic stability
4. Redistribution of Income
C. REGULATION TO RESTRICT OR MANDATE PRODUCTION D. PUBLIC PROVISION OF A PRIVATE GOOD E. PUBLIC FINANCING OF PRIVATE PROVISION
Also Social insurance: unemployment compensation, retirement insurance, medical insurance (medicare and Medicaid), disability insurance, and health insurance market.
THE PRINCIPAL OF DIMINISHING MARGINAL UTILITY STATES THAT THE MORE ONE HAD OF A PARTICULAR GOOD OR WEALTH, THE LESS ONE ENJOYS THE LAST OR NEXT INCREMENT. UNDER THIS PRINCIPAL THE OVERALL UTILITY OF THE COMMUNITY OR COUNTRY WOULD BE INCREASED IF THOSE WHO HAD THE MOST WEALTH WERE TAXED AND THE PROCEEDS WOULD GO TO THOSE WHO HAD LITTLE OR NOTHING BECAUSE THE UTILITY OF THE RECIPIENTS WOULD BE MUCH GREATER THAN THE LOSS OF UTILITY OF THE LOSERS.
AUDIT REVIEW TELLS MANAGERS, EXECUTIVES AND LEGISLATORS IF THE PROGRAM PURPOSES ARE BEING MET, AND IF THE SPENDING OR OBLIGATING IS WITHIN BUDGET LIMITS.
3. Activity or Task-based: Focus on specific tasks to be performed, e.g. miles of road built, number of students taught, number of criminals captured….
4. Function, purpose, or program: outcome based, broad purpose
5. Performance Budgeting
2. What if questions/surveys
3. Revealed Preference
4. Average Value of life insurance
5. Present value of future earnings
6. Premium pay for risky jobs
bond value = present value of face value + present value of interest payments
2. transfer of payments
3. capital investments
2. legislative consideration (approval)
4. audit and evaluation
1. PREVENTIVE CONTROLS – block actions that would violate standards
(training, rotation of duties, separation of responsibilities, separate accounting from operations --> increases accountability)
2. FEED FORWARD CONTROLS – perform diagnostic or therapeutic actions in the spending process.
3. FEEDBACK CONTROLS – start corrections into the budget cycle for the future
2. Organizing - Bringing together the resources required to accomplish the objective and combining them in the proper combination and the proper sequence
3. Controlling - conducting measurement and taking corrective action
public - goal is also efficient allocation of resources, multiple objectives and revenues are not tied to production
2. The welfare of the community depends on the welfare of the individuals in the community
3. To judge the impact of a social action on the welfare of the community requires an assessment of whether any individuals are better off or worse off
1. Legal requirements 2. Citizens and lenders need to know
It identifies sources and uses of funds It shows spending priorities
Use by one person does not prevent concurrent full use by others.
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