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ECO3002
Economic policy analysis
Faculty of Business
Study book
Published by
University of Southern Queensland
Toowoomba Queensland 4350
Australia
.au
© University of Southern Queensland, 2010.6
Copyrighted materials reproduced herein are used under the provisions of the Copyright Act 1968 as amended, or
as a result of application to the copyright owner
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any
means electronic, mechanical, photocopying, recording or otherwise without prior permission
Produced by the Distance and e-Learning Centre using the ICE Publishing System
Table of contents
Page
Module 1 – Important concepts in economic policy 1
Objectives 1
Learning resources 1
Introduction 1
1.1 The public sector in a mixed economy 2
1.2 Economic rationale for public policy 2
1.3 Public production of goods and services 3
1.3.1 Preliminary comment 3
1.3.2 Public production: public and private goods 4
1.3.3 Public goods: efficiency conditions 4
1.3.4 Public pro
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