Why, according to Tiebot, does a satisfactory theory of public finance require three objectives? What are the three objectives?
Karyth Cara | Certified Educator
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"