公共部门经济lectureNo.3Ch.2.ppt

Economics of the Public Sector;In most Western economies, primary reliance for the production and distribution of goods lies in the private rather than the public sector.;Ch. 2， The Economic Rationale for Government;Sect.1, The efficiency of competitive markets: the invisible hand.; Adam Smith, “invisible hand” ;Sect.1, The efficiency of competitive markets;Sect.1, The efficiency of competitive markets;Sect.1, The efficiency of competitive markets;Sect.1, The efficiency of competitive markets;Part.1, The two fundamental theorems of welfare economics;Part.1, The two fundamental theorems of welfare economics;;Diagrammatic way of representing the Pareto efficiency of the economy;Part.1, The two fundamental theorems of welfare economics;Part.1, The two fundamental theorems of welfare economics;Part.1, The two fundamental theorems of welfare economics;Part.1, The two fundamental theorems of welfare economics;Part.1, The two fundamental theorems of welfare economics;Part.1, The two fundamental theorems of welfare economics;Part 2, The Pareto efficiency of the competitive economy;Part 2, The Pareto efficiency of the competitive economy;Individual’s decision on number of hours to work;Individual’s decision on number of hours to work;Individual’s decision on number of hours to work;Individual’s decision on number of hours to work;Firm’s production function;Firm’s production function;Conclusion;Conclusion;Conclusion;