Economics of public expenditure

Economy

A region where factors of production work together to achieve common macroeconomic objectives

Factors of production

Land

Labour

Capital

Natural resources

Labour

A commodity supplied by labourers in exchange for wages pay by demanding firms

Land

Naturally occurring geographical area whose reward is rent

Capital

Assets used in production process, the reward is interest and profits

Economics

It is the study of how human beings use the scarce available resources to attain their limited and competing needs

Microeconomics

It focuses on individual economic agents and the market i.e household, market and firm

Macroeconomics

It's the study of aggregate variables in the economy, how they achieve equilibrium and policies used to influence equilibrium

Macroeconomics objectives

Economics growth

Employment

Stability

Security

Balance of payment equilibrium