《财政学教学资料》ch01.docVIP

Chapter 1 Individuals and Government Instructional Objectives Chapter 1 is a general introduction to the field of public finance, emphasizing the relationship between individuals and government. The functions of government are outlined, and the importance of taxes in household budgets is highlighted. The chapter seeks to develop an understanding of the economic role of government as a supplier of useful goods and services. Students are also expected to digest data on the actual extent of government activity in the United States and other nations. They should know the current structure of government expenditures and revenues in the United States, how government has grown since 1920, and how the structure of federal government spending has changed since 1960. In addition, the chapter seeks to demonstrate that the problem of scarcity implies that an increase in resources devoted to government goods and services decreases availability of resources for nongovernment uses. It is also made clear to students how government provision of goods and services differs from market provision of goods and services. Changes in This Edition All graphs and tables have been revised using the latest available data and information. The International View on government spending throughout the world has been updated using new OECD data. The categories for federal expenditure have been revised to conform to current use of government consumption in?the National Income and Product Accounts. The discussion of state and local government expenditure and finances has been expanded. There is a new section discussing state government fiscal difficulties in 2002 and 2003. The new section details structural problems in state government finance and has information about states that have been particularly impacted by financial problems. A new problem on state and local government finance has been added to the chapter. New Internet Resources have been added. Chapter Outline Individuals, Society, and Gov