chp 5-6 public policy

This set of flashcards covers key vocabulary related to public policy problems, evaluation methods, economic theories, and analytical tools discussed in the lecture.

Public Problems

Challenges or issues that affect the wellbeing of society and require governmental or collective action.

Operational Measurement

A method of measuring political problems in a way that can be quantified for analysis and decision-making.

Mercantilism

An economic theory emphasizing the importance of stockpiling wealth to increase national power and influence.

Mixed Economy

An economic system combining private and public enterprise.

Laissez Faire

An economic philosophy of free-market capitalism that opposes government intervention.

Evaluative Criteria

Standards applied to judge the effectiveness and justification of policy proposals.

Effectiveness

The likelihood of achieving intended policy goals.

Efficiency

The optimal allocation of resources to achieve desired outcomes with minimal costs.

Pareto Improvement

An allocation of resources that benefits at least one individual without making anyone else worse off.

Pareto Efficiency

A resource allocation where no change can make someone better off without making someone else worse off.

Equity

Fair distribution of costs and benefits across individuals in society.

Cost-Benefit Analysis

A process used to evaluate the economic feasibility of a project by comparing its costs and benefits.

Utility Function

A mathematical representation of preferences that shows the relationship between the quantity of goods consumed and the satisfaction derived.

Diminishing Marginal Returns

A principle stating that as more units of a resource are added, the additional output generated from each new unit will eventually decrease.