Public vs. Private Finance Overview

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Questions and Answers

What is the primary focus of Public Fiscal Administration?

The purchasing decisions of local governments

The formulation, implementation, and evaluation of fiscal policy (correct)

Individual tax planning strategies

The management of private sector funds

How does fiscal policy benefit government objectives?

By enforcing strict regulations on private wealth

Through privatization of public services

By minimizing public spending as much as possible

Through a mix of taxation, expenditures, and borrowings (correct)

Which of the following best defines Public Finance?

The analysis of government revenue-expenditure patterns and their economic effects (correct)

The study of personal funds and investments

The financial management of private businesses

The administration of community service funds

Which component is NOT included in Public Fiscal Administration?

Personal finance management Signup and view all the answers

What role does budgeting play in Public Finance?

It involves planning and allocating government expenditures and resources. Signup and view all the answers

What distinguishes Public Finance from Private Finance?

Public Finance focuses on community welfare and collective budgets. Signup and view all the answers

What is one of the key functions of fiscal policy?

To manage economic activities through government revenue and expenditure. Signup and view all the answers

Which statement accurately reflects the definition of Public Finance?

It represents the governmental processes of collecting and spending funds. Signup and view all the answers

What is Prof. Corazon Urbis's highest completed academic qualification?

Master in Public Administration Signup and view all the answers

What position did Prof. Urbis hold from November 14, 2011 to May 7, 2013?

College Secretary Signup and view all the answers

Which organization is Prof. Urbis NOT a member of?

National Association of Business Educators Signup and view all the answers

What degree did Prof. Katherine A. Rabbon complete in 2018?

Master in Business Administration Signup and view all the answers

How many units in Doctor in Business Administration has Prof. A. Rabbon completed?

21 units Signup and view all the answers

Which of the following roles did Prof. Urbis fulfill first?

Disciplinal Chair of Cooperative Management Program Signup and view all the answers

What is Prof. Urbis's current role within the UNP Faculty Union?

Treasurer Signup and view all the answers

Which organization is both Prof. Urbis and Prof. Rabbon a member of?

UNP Faculty Union Signup and view all the answers

What is the recommended government action during times of economic expansion according to the principles of public finance?

Increase taxation and reduce public expenditure Signup and view all the answers

Which statement accurately reflects the goals of public finance?

To achieve stable growth through equitable income distribution Signup and view all the answers

What fundamental distinction separates public finance from private finance?

Public finance deals with public wants, whereas private finance relates to private wants Signup and view all the answers

What does the Exclusion Principle imply in the context of private wants?

Individuals must pay to enjoy certain goods or services Signup and view all the answers

Why is the study of public finance crucial in an economy?

To understand the impacts of government revenues and expenditures Signup and view all the answers

How are public wants characterized in comparison to private wants?

Public wants are independent of individual payment contributions Signup and view all the answers

What is one of the primary objectives of utilizing public expenditure, taxation, and public debt?

To stabilize economic fluctuations Signup and view all the answers

Stable growth of income is best achieved through which of the following methods?

Increasing employment and equitable distribution of wealth Signup and view all the answers

What is the primary objective of promoting economic growth in a free enterprise system?

To enhance the economy’s ability to produce goods and services Signup and view all the answers

Which of the following objectives is directly related to maintaining an acceptable rate of economic growth?

Economic stability Signup and view all the answers

What does economic efficiency require from government production processes?

Least cost and allocative efficiency comparable to private production Signup and view all the answers

Which objective is fundamental for achieving the other economic goals in a free enterprise system?

Economic security Signup and view all the answers

What does the government aim to do to strengthen economic freedom?

Provide a framework that respects consumer choices and maintains competition Signup and view all the answers

What is the primary source of funds for the private economy?

Issuance of marketable securities Signup and view all the answers

Which of the following best describes how the public economy prepares its budget?

Assesses expenditure needs first Signup and view all the answers

What fiscal function is concerned with providing collective goods that are socially desirable?

Allocation Function Signup and view all the answers

What does the Distribution Function aim to correct?

Wealth disparities Signup and view all the answers

Which of the following is NOT a source of funding for the public economy?

Issuance of stocks Signup and view all the answers

What is the primary focus of the Stabilization Function in fiscal policy?

Combatting inflation and unemployment Signup and view all the answers

What is the initial step of budgeting for the private economy?

Determining income sources Signup and view all the answers

Which of the following is a key characteristic of marketable securities?

They allow private entities to raise capital. Signup and view all the answers

Study Notes

Program Chair and Faculty Information

Prof. Corazon Urbis is the Program Chair of BSBA Financial Management and the Treasurer of UNP Faculty Union.
Prof. Urbis holds a BSBA in Banking and Finance, a Master's in Public Administration, and is currently completing a Doctor of Business Administration.
Prof. Urbis has held various leadership positions at the College of Business Administration and Accountancy, including Disciplinal Chair for the BSBA-FM program.
Prof. Katherine A. Rabbon is a Faculty Member at the College of Business Administration and Accountancy.
Prof. Rabbon holds a BSBA in Financial Management and a Master's in Business Administration.
Prof. Rabbon is currently pursuing a Doctor of Business Administration and is an active member of various professional organizations.

Public Finance vs. Private Finance

The primary goal of both private and public finance is to meet the needs of the population.
Public finance focuses on satisfying public wants, while private finance focuses on private wants.
Public wants are those that cannot be satisfied through market mechanisms and are not subject to exclusion principles.
Private wants are those that are satisfied through market mechanisms where exclusion principles apply based on the individual's ability to pay.
Public finance relies on taxation, printing money, public borrowing, and the sale of public assets and services to fund its operations.
Private finance uses market securities and private income or assets for funding.
Public budgets begin with expenditure needs, while private budgets start with income estimations.

Fiscal Policy in the Philippines

Fiscal policy in the Philippines involves a mix of tax, spending, and borrowing policies to achieve government objectives.
Fiscal policy aims to achieve economic stability, promote growth, and distribute income equitably in the Philippines.
Examples of fiscal policies in the Philippines include taxing more during expansions and spending more during recessions to stabilize the economy.

Understanding Public Finance

Public finance is the study of the government's revenue and spending patterns and their impact on the economy.
It focuses on collecting and spending government funds including taxation, expenditure, budget preparation, and debt management.
Public finance is essential for ensuring the government can fulfill its role in the economy and achieve its objectives.

Key Functions of Government in the Economy

Government plays a crucial role in a free enterprise economy by promoting economic freedom, efficiency, growth, stability, and security.
The government's allocation function involves providing public goods that the market cannot provide efficiently.
The distribution function aims to address wealth inequality by redirecting resources from the wealthy to the less-wealthy.
The stabilization function stabilizes the economy by mitigating unemployment and inflation and improving living standards.

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Description

This quiz explores the key differences and similarities between public and private finance. It highlights the roles of financial management in meeting the needs of the population and includes insights from faculty experts in the field. Test your understanding of these important concepts!