Why, according to Tiebot, does a satisfactory theory of public finance require three objectives? What are the three objectives?



Asked on

1 Answer | Add Yours

karythcara's profile pic

Posted on (Answer #1)

Tiebot's assumptions are:

  • perfect mobility of consumers to ideal communities
  • perfect information about communities, amenities and goods available
  • consumption of goods does not detract form others' consumption, in fact renders good back to other community members

The objectives ientified for government are that:

  • government ascertains consumers wants
  • government taxes according to known wants
  • government acts so that "revenue-expenditure pattern for goods and services [will] adapt to consumer preference"

We’ve answered 395,839 questions. We can answer yours, too.

Ask a question