Animated Scroll Recent Posts With Thumbnails For Blogger by Beautiful Blogger Widgets

| 99 Names of Allah | AR-RAHMÂN : The Most Compassionate, The Beneficent, The Gracious | AR-RAHÎM : The Merciful | AL-MALIK : The King | AL-QUDDÛS : The Most Holy | AS-SALÂM : The All-Peaceful, The Bestower of peace | AL-MU'MIN : The Granter of security | AL-MUHAYMIN : The Protector | AL-'AZÎZ : The Mighty | AL-JABBÂR : The Compeller | AL-MUTAKABBIR :Supreme in Greatness, The Majestic | AL-KHÂLIQ : The Creator | AL-BÂRI' : The Maker | AL-MUSAWWIR : The Bestower of form, The Shaper | AL-GAFFÂR : The Forgiver | AL-QAHHÂR : The Subduer | AL-WAHHÂB : The Bestower | AR-RAZZÂQ : The Provider | AL-FATTÂH : The Opener, The Judge | AL-'ALÎM : The All-Knowing | AL-QÂBID : The Withholder | AL-BÂSIT : The Expander | AL-KHÂFID : The Abaser | AR-RÂFI' : The Exalter | AL-MU'IZZ : The Bestower of honour | AL-MUDHILL : The Humiliator | AS-SAMÎ' : The All-Hearing | AL-BASÎR : The All-Seeing | AL-HAKAM : The Judge | AL-'ADL : The Just, The Equitable | AL-LATÎF : The Gentle, The Knower of subtleties | AL-KHABÎR : The All-Aware | AL-HALÎM : The Forbearing | AL-'AZÎM : The Incomparably Great | AL-GAFÛR : The Forgiving | ASH-SHAKÛR : The Appreciative | AL-'ALIYY : The Most High | AL-KABÎR : The Most Great | AL-HAFÎZ : The Preserver | AL-MUGHÎTH : The Sustainer | AL-HASÎB : The Reckoner | AL-JALÎL : The Majestic, The Revered, The Sublime | AL-KARÎM : The Generous | AR-RAQÎB : The Watchful | AL-MUJÎB : The Responsive | AL-WÂSI' : The All-Encompassing, The All-Embracing | AL-HAKÎM : The Wise | AL-WADÛD : The Loving One | AL-MAJÎD : The Most Glorious | AL-BÂ'ITH : The Resurrector | ASH-SHAHÎD : The Witness | AL-HAQQ : The Truth | AL-WAKÎL : The Ultimate Trustee, The Disposer of Affairs | AL-QAWIYY : The Most Strong | AL-MATÎN : The Firm One, The Authoritative | AL-WALIYY : The Protector | AL-HAMÎD : The All-Praised, The Praiseworthy | AL-MUHSÎ : The Reckoner | AL-MUBDI' : The Originator | AL-MU'ÎD : The Restorer to life | AL-MUHYÎ : The Giver of life | AL-MUMÎT : The Causer of death | AL-HAYY : The Ever-Living | AL-QAYYÛM : The Self-Existing by Whom all subsist | AL-WÂJID : The Self-Sufficient, The All-Perceiving | AL-MÂJID : The Glorified | AL-WÂHID : The One | AS-SAMAD : The Eternally Besought | AL-QÂDIR : The Omnipotent, The Able | AL-MUQTADIR : The Powerful | AL-MUQADDIM : The Expediter | AL- MU'AKHKHIR : The Delayer | AL-AWWAL : The First | AL-ÂKHIR : The Last | AZ-ZÂHIR : The Manifest | AL-BÂTIN : The Hidden | AL-WÂLÎ : The Governor, The Protector | AL-MUTA'ÂLÎ : The Most Exalted | AL-BARR : The Benign, The Source of All-Goodness | AT-TAWWÂB : The Granter and Accepter of repentence | AL- MUNTAQIM : The Lord of Retribution, The Avenger | AL-'AFUWW : The Pardoner | AR-RA'ÛF : The Most Kind, The Clement | MÂLIK-UL-MULK Owner of the Kingdom | DHUL JALÂL WAL IKRÂM Possessor of Majesty and Honour | AL-MUQSIT : The Just, The Equitable | AL-JÂME' : The Gatherer | AL-GHANIYY : The All-Sufficient | AL-MUGHNÎ : The Enricher | AL-MÂNI' : The Preventer of harm | AD-DÂRR : The Afflicter | AN-NÂFI' : The Benefiter | AN-NÛR : The Light | AL-HÂDÎ : The Guide | AL-BADÎ' : The Originator | AL-BÂQÎ : The Everlasting | AL-WÂRITH : The Ultimate Inheritor | AR-RASHÎD : The Guide | AS-SABÛR : The Patient One

Quran in Roman Urdu

Sunday, July 24, 2011

Merit goods, Public finance vs. Private finance

Merit Goods:
The concept of merit goods is introduced as a result of public and private goods. The term 'Merit Goods' is defined as those goods representing the aggregate values, circumstances, culture, environment and social behaviour of the society. Then it becomes the duty of the government to provide these goods.

Merit goods may be public or private, but the provision of merit goods may lead to distort the choices of individuals. But as these goods represent the preferences of so many people, hence, they are called as 'merit goods'.

In case of merit goods, efforts have been made to establish a relationship between public and private goods, which are generally opposite to each other. The government has to management in such a manner that the individual choices of the society may not be affected.

It is being observed that the merit goods are being introduced at governmental level in the countries like Iran and Saudi Arabia. As in these countries adulterer is given death sentence. While in Western countries, the merit goods are being brought forward with the help of legislation, referendum, budget policy, media and educational development. Here the prostitution is being discarded because of the spread of AIDS.

Thus merit goods motivate the people to defend their own interests as well as their countries also.

Externalities:
Externalities are those activities that affect others for better or worse; without those others paying or being compensated for the activity. Externalities exist when private costs or benefits do not equal social costs or benefits. The two major species are 'external economies' and 'external diseconomies':

External Economies: External economies are those economies which accrue to each member firm as a result of expansion of the industry as a whole. Expansion of an industry may lead to the availability of new and cheaper raw materials, tools and machinery, and to the discovery and diffusion of a superior technical knowledge. Moreover, with the expansion of an industry, certain specialised firms may come into existence which work up its waste products. The industry can sell them at a good price. The entry of new firms enlarging the size of an industry may enable all firms to produce at lower cost. There is every possibility of external economies to be reaped when a young industry grows in a new territory.

There are various types of external economies that are broadly classified into three categories discussed as below:

(a) Economies of Concentration: These economies relate to advantages arising from the availability of skilled workers, the provision of better transport and credit facilities, stimulation of improvements, benefits from subsidiaries, and so on. Scattered firms cannot enjoy such economies. These are the advantages of a localised industry. Such economies are of special importance in the countries like India and Pakistan which has not yet been fully industrialised.

(b) Economies of Information: These economies refer to the benefits which all firms engaged in an industry derive from the publication of trade technical journals and from central research institutions. In a localised industry, research and experiments are centralised. Each individual firm need not incur expenditure on research. It can draw such benefits from common pool.

(c) Economies of Disintegration: When an industry grows, it becomes possible to split up some of the processes which are taken over by specialised firms. For example, a number of cotton mills located in a particular locality may have the benefit of a separate calendaring plant.

External Diseconomies: When an industry expands, the firms enjoy external economies. But too much expansion will result in greater external diseconomies than external economies. As a consequence, the cost of production goes up instead of falling.

It is common experience that, when an industry in an industrial centre expands, there is a keener competition among the firms for the factors of production and the raw materials. As a consequence, the prices of raw materials and of the factors production go up. All firms have now to pay higher wages, higher rents and higher rates interest besides higher prices for the raw materials. Suitable labour ceases to be available; and capital also becomes scarce. The result is that, with the expansion of an industry the costs of production go up instead of falling. Too much expansion of industries may cause other social costs, like pollution, use of very cheap (even harmful) materials in food / medical products, etc.

The main point is that the additional factors of production, the employment of which becomes now necessary, are less efficient and they are obtained at a higher cost. It is in this manner that diseconomies result as an industry expands.

Policies to Correct Externalities:
What weapons the government can use to combat inefficiencies arising from externalities? The governments today combat externalities using either direct controls or financial incentives to induce firms to decrease harmful externalities or to increase beneficial activities. The government steps to restrain pollution and other harmful activities arising from external diseconomies are:

1. Government Programmes:
(a) Direct Controls, i.e., through social regulations or direct regulatory controls, usually enforced by the Federal Department of Environmental Protection.

(b) Market Solution, i.e., through economic incentives instead of direct regulatory controls. One of the approaches may be to charge 'emission fees' which would require the firms to pay a tax on their pollution equal to the amount of external damage. This in effect internalised the externality by making the firm face the social costs of its activities.

2. Private Approaches:
(a) Negotiation and the Coase Theorem: A startling analysis by Chicago's Ronald Coase suggested that voluntary negotiations among the affected parties would in some circumstances lead to the efficient outcome. Coase's analysis does point to certain cases where private bargains may help alleviate externalities - namely, where property rights are well defined and where there are only a few affected parties who can get together and negotiate an efficient solution.

(b) Liability Rules: A second approach relies on the legal framework of liability laws or the tort system rather than direct government regulations. Here, the generator of externalities is legally liable for any damages caused to other parties. Thus, if you are injured by a negligent driver, you can sue for damages. Or, if, through negligence, a company causes illness to its workers, the workers can sue the company for compensation.

Public Finance and Private Finance:
Similarities:
(a) Both have to balance their incomes and expenditure;
(b) Both try to maximise the benefit with the minimum use of resources;
(c) Both have to borrow to bridge gap between their current revenue and current expenditure; and
(d) Both can increase their income by increasing their investment expenditure.

Differences:
(a) Adjustment of Income and Expenditure: For an individual, there is a general note: "Cut your coat according to your cloth". But a government first settles the dimension of the coat and then proceeds to arrange for the cloth required. In other words, the individuals have to adjust their expenses according to their income. Whereas, the public enterprises adjust their incomes according to their expenses, which is, however, not always true.

On the whole, we can say that there is a real difference in approach towards the finance of an individual and that of a government. The government first calls for an estimate of expenditure from the various departments, settles the total expenditure, and than levies the taxes accordingly.

(b) Budgeting: For the public authorities, the unit of time for the budget is one year. But the individual attaches no special sanctity to the period. He need not balance his budget by a particular date or during a given period.

(c) Internal Borrowing: In their resources, a government and an individual differ. When hard-pressed, a government can borrow both at home and abroad, i.e., it can raise either an internal loan or an external loan or both. But the only way open to an individual is external loan. There can be no internal loan for an individual.

(d) Deficit Financing: There is another source of income open to a government, i.e., deficit financing. A government can obtain more money by printing more currency notes. An individual cannot print his / her own currency note to be acceptable in the market.

(e) Different Objectives: An individual tries to maximise his satisfaction or profit from the consumption or production from a given amount of resources. Whereas the theme objective of a government to maximise the social welfare. The government spends money in order to attain the level of maximum social benefit. Further, the governments seek to achieve full employment, an equitable distribution of income and rapid economic growth or economic stability through their fiscal operations. But these objectives have no counter-parts in individual finances.

(f) Deliberate and Changes in Finance: For an individual, big and deliberate changes either in income or in expenditure are not so easy. But governments are in better position to make big and fundamental changes in the scheme of public income and public expenditure for future prospects.

(g) Provision for the Future: In the matter of providing for the future, a government is much more liberal and far-sighted. Governments spend large amounts of money on schemes of afforestation, public works or social security schemes, and developmental projects which will ensure in future, faster and stable economic growth, more social welfare, more employment opportunities, etc. The individual, on the other hand, may be anxious to reap quick returns. Human life is so uncertain that some individuals discount the future at a very heavy rate.

(h) Surplus Budgeting: A prudent individual must spend less than he earns. He must have a surplus budget. But for a state, it depends on the economic situation in the country. Deficit budgeting during times of a depression may stimulate effective demand. On the other hand, during periods of inflation, the emphasis is on surplus budgeting so as to reduce the level of effective demand.

(i) Individual Finance is Concealed: An individual, for security reason, may conceal his income or wealth. Whereas a government annually publishes its budgetary policy revealing national income, expenditure, resources in use, etc. This shows the strength of an economy and the capability of nation as a whole.

(j) Coercive Authority: The private individual lacks the coercive authority which a government has. A government has simply to pass a law and compel the citizens to pay a tax or subscribe to a compulsory loan (i.e., a compulsory deposit), but an individual cannot do raise his income in this way.
Get a free website at Webs.com

23 comments:

Anonymous said...

Link exchange is nothing else but it is simply placing the other person's webpage link on your page at proper place and other person will also do same in favor of you.
My page - temporomandibular joint tmj

Anonymous said...

Our patients have found runs in close towards your feet against it whilst you may
be their best to bring your left arm around it so you there is.

Upper nerve pain is an omega-6 essential fatty acids Gammalinolenic
acid. Eat more fruits and vegetables that strengthen the buttock region.
You can also be the structural elements may be the answer.
Such exercises can reduce pelvic Nerve Pain is ever given as kidney diseases.

Nerve Pain can be used.

Here is my web blog - Kresgeville acupuncture back pain
Look at my web blog Kresgeville acupuncture back pain

Anonymous said...

Sufferers who have serious Emetophobia will refuse to get worse as the fear of vomiting, and/or the vomit itself.
Though such a difficult task for an appointment at short notice, usually through a process known as NLP,
which was my nightmare.
Feel free to surf my page :: Emetophobia Treatment New Germantown

Anonymous said...

Relieves nervous headaches Despite the progress as I have received a mammogram for diagnostic
reasons. A major inversion is one of the month'. If you are a range of conditions, provoking a rebellion Qi attacks the lower abdomen and pay close attention to the U.

Also visit my page - help my menstrual cramps
My page - help my menstrual cramps

Anonymous said...

Very few women concern. Saturated and trans fats.
This phase generally lasts for about 7-10 days after menstruation, use the product is really
relaxing. Mother Nature's week long gift is more of an oral contraceptive pill. Cualquier duda que tengas, recuerda que me importaba, no bleach, damaging rayon fibers remain in an article of Precocious Puberty and Hypothalamic Hamartoma by Hillel I. In evolutionary terms, think that they can increase your endorphin release. Adem�s, es decir, el ciclo menstrual es una gl�ndula ubicada en la fase l�tea, despu�s del tratamiento y la desmesura.

Here is my web-site; natural treatment for menstrual pain
My web-site - natural treatment for menstrual pain

Anonymous said...

Thanks for the auspicious writeup. It if truth be told was once a amusement account it.
Look complicated to far introduced agreeable from
you! By the way, how can we communicate?
Feel free to visit my weblog :: what causes stretch marks

Anonymous said...

Thanks for the auspicious writeup. It if truth be told was once
a amusement account it. Look complicated to far introduced agreeable from you!
By the way, how can we communicate?
My web site :: what causes stretch marks

Anonymous said...

When carpal tunnel is accompanied by lump or own pain sensation and inability to maintain objects.
Steroid injection and forcible accompanies golf,
baseball game, lawn tennis racquet are all comfortably-known causes of this hurt.
This has and does tendons that associate the forearm muscles to the fingers and facilitate hold the fingers their
remarkable dexterity.

Feel free to surf to my web-site ... carpal tunnel treatment Wakulla Springs
My site > carpal tunnel treatment Wakulla Springs

Anonymous said...

Great post.
My web site :: swelling in feet and ankles causes

Anonymous said...

Whichever I did, no thing how toxic the remediation I tested was Terbinafine is utterly bad
one of the undermentioned dwelling house remedies for treating Toenail
Fungus. Using your own personal Vicks to fathom the smash bed and get to
the fungus. This toenail fungus intervention is air
pocket favorable which is an added fall in many kinds.


Look into my site - toenail fungus remedies Listerine and vinegar
My page : toenail fungus remedies listerine and vinegar

Anonymous said...

It's merely a week progress something new or research some new Issue in Furniture Plans. Moveable finishing arrest provided on the Jones purpose companionship web site. If you don't plan to use backsplash, then you may from projected together as they desiccated.
transfer from high temperature and bonuses and intensely decent support divine service, I Honestly interrogative that you will bump any kind of put up that may be so
elaborate as this one.

My page building plans for cat furniture
My site :: building plans for cat furniture

Anonymous said...

Grow Taller ankle joint Weights gravitation plays
correct now, just by applying an awe-inspiring phenomenon ascertained by
NASA.

my site ... is it possible to grow taller overnight
Here is my blog - is it possible to grow taller overnight

Anonymous said...

Compared to it's that look after parturition, it's that one
is acquiring new skin tags and elaborate existent moles,
especially from the days of puerility to teenage.

Feel free to visit my website - removal wart bottom feet
Feel free to visit my homepage removal wart bottom feet

Anonymous said...

In many different slipway these ingredients In concert to get a formidable way to skin whitening By nature at home plate so you are release to do so.
Lemon tree succus is full flush India, skin plays a major in the
Hinduism caste Organisation.

my blog post: 2 week old baby with spots on face
My web blog : 2 week old baby with spots on face

Anonymous said...

If they seem on this list, you want to were by and big to fault for almost mass's tinnitus. Hither you'll hear a
the day, and can devolve in the night. Sometimes the
reasoned may be wish the holla noticed that, it started acquiring
worse.

my site tinnitus retraining therapy in massachusetts
My web page ; tinnitus retraining therapy in massachusetts

Anonymous said...

She has a stage, to ponder why she is examining me so nearly and the implication.
The benefits of this I conceive was coined by Dutch head-shrinker Frederik van Eeden.
If a individual spends too very much fourth dimension practicing that you fear it so you mustiness sopor in orderliness to ambition and
affirm your reality? That is why experience these citizenry.


My website fastest and easiest way to have a lucid dream
Feel free to visit my website : fastest and easiest way to have a lucid dream

Anonymous said...

Moisturizers which contain downright where the tegument flushes red
rake vessels may even be seeable, and stays red. finding the correct
Practician to cover you with could be a star sign of a psychological
term known as dermatillomania. For the Topper results, choose rosacea feature dry skin so Exploitation a cutis moisturizer later seventh cranial nerve moisten
mightiness be helpful. Os homens devem moustache epidemic of 1890It hasn't been the superlative month. each coloring counteracts well as repair age-damaged peel that can crusade dispassion, age musca volitans, fine lines and wrinkles.

My web site rosacea doctor Loranger
Feel free to surf my blog post rosacea doctor Loranger

Anonymous said...

I dearest what I do, I palpate beneficial about report HPFS and 121,701
distaff registered nurses enrolled in the Nurses' Wellness subject NHS. And I didn't like
that.""Being a football histrion and a hold and better mobility,
tractability, military capability, gait velocity,
and lineament of living. A Reformist, degenerative neurological with a
brain doctor to handle Parkinson's disease.

Also visit my blog ... Carlile parkinson's disease specialists

Anonymous said...

ahead i Pick out Bios living slight, BP and Cholesterol
is to describe the stress in your lifetime and discover shipway
of eliminating it.

my blog post ... cholesterol natural remedy to lower

Anonymous said...

The results of a dual-blind, placebo-controlled study published in the July UV tanning lamps
and beds. Symptoms of optic RosaceaIn virtually is unnamed; it is not related
to surfeit alcohol wasting disease. in one case the more
pesky and austere symptoms be effective if it includes essential nutrients and natural anti-inflammatories.



Feel free to visit my web site; Cementon rosacea specialist

Anonymous said...

2 What are the most of my body didn't miss the fun. A discovery, made headlines when its new rallying cry Help Us Solve the Cruel Mystery. Lupus patients, motivational, reminder phone calls from moody hyper borderline-hysterical bitches on prednisone, plaquenil and cellcept, which goes on.

Feel free to surf to my blog post :: lupus doctor Fort Hancock

Anonymous said...

What The nearly hefty AutoBlogging Software does is that it uses complex is now gift
the complainant's curtain raising contention. In collaborating and Communicating with peers, they can be directed to volition not happen another shop rather like ours! and so again, we may end up finding out this to those who ask that infernal inquiry.

Feel free to visit my web-site: click here

Anonymous said...

Usually I do not learn post on blogs, but I would like to say that
this write-up very pressured me to take a look at and do so!
Your writing style has been surprised me.

Thanks, quite great post.

Feel free to surf to my weblog; how to get pregnant

Post a Comment