A public good is a product or service that is available and can be accessed by any member of society. These types of goods are usually provided by the government and catered to through taxation. Military, law enforcement agencies, and the rule of law are some examples of public goods. The term public good can also be used to refer to basic commodities that people cannot do without like clean drinking water. Public goods do not diminish in supply when people consume them.
Cost-benefit analysis is a technique used by firms to determine if the decisions they want to make are feasible. It provides information about what the managers should expect when they take a certain decision and the cost of making that decision. A cost-benefit analysis is often carried out by managers to analyze the revenues expected and the costs that may be incurred when a company undertakes a project. This analysis will tell the stakeholder whether the project is viable or if they should pursue another investment.
Behavioral public economics
Behavioral public economics studies the psychological factors that influence how individuals and institutions make decisions. In the real-world, benefits and satisfaction determines the type of decisions made by people. The rational choice theory in public economics says that when people are presented with a variety of choices in scarce conditions, they will settle on the option that guarantees their satisfaction.
Bureaucracy is a system that ensures that there is inform authority within and across an entity. According to Max Weber, a renowned German sociologist, bureaucracy a rational approach employed to organize a complicated business. This concept is extensively used by large organizations and governments to administer rules and regulations.