Public finance Essay Example | Topics and Well Written Essays - 2750 words

Public finance - Essay Example ng maximum output from its resources, whereas, parreto efficiency occurs where it is impossible to make one better off without making at least one worse off. The efficiency in the public sector is distorted by market failures. Market failures are those situations where conditions necessary to achieve the market efficient solution fail to exist or are repudiated somehow. Some the examples of market failures include the existence of public goods and externalities, imperfect competition, incomplete information, uncertainty and many more. When market fails in the public sector, inefficiencies are at its peak and intervention from a vast external force is much needed, this is the part where government intervenes in the market. The intervention of the government involves the four branches known as the Musgrave’s 4 branches which are; allocation branch, distributional branch, stabilization branch and regulatory branch. First, the allocation branch is activated when one of the following four principles are violated; a lucid system of property rights, complete information to buyers and sellers, excludable principle and rivalry in consumption. So for commodities where property rights cannot be assigned to a single individual, these common property resources fail the market due to the problem called tragedy of the commons, as these goods are for free and individuals’ tend to over use them. This over usage of the goods would mean rapid deterioration of the goods and that less of the goods would be available to others. This is a violation of the principle of having a clear system of property rights. The allocation branch corrects this inefficiency by communally owning the property rights rather than rights being privately owned and this means for each resource government allocates the right to use that resource. In addition, inefficiency also arises from pure public goods that are non-excludable and non-rival in consumption. In the case of non-excludable you cannot

Who Done It Business Communications Assignments Essay

Who Done It Business Communications Assignments - Essay Example This is a flaw, which the management seeks to address. Consequently, the management has audited the system and discovered the causes of the flaws. The most affected workers were the tellers who deal directly with the clients (Campion). The management has discovered that teller conducted reconciliation in an inappropriate order. The inappropriate reconciliation resulted in the system malfunction. Therefore, the system failed to post such transactions by the end of the business day. The management has realized that most tellers were running close, registering, posting and merging. Execution of the 2.00 P.M in that order meant once the employee click on the post option there would be nothing for the system to merge. Additionally, the consolidate option failed to pop up. Consequently, the teller assumes that the system will deal with such inconsistencies since it is advanced and it executes much functionality automatically. The above malfunction has affected the functioning of the bank greatly. The IT (information technology) department was vested with the task of correcting the above malfunctions. Therefore, this communication seeks to elaborate what corrective measure the entity has adopted to streamline the system (Campion). It is imperative for employees to understand that the system is its initial stages of installation. Subsequently, the system may have several flaws that the developer had not foreseen. The measures that this department has adopted include elaborating the correcting reconciliation procedure to the tellers. The proper procedure is running close, registering, merging and posting. This ensures that the system has data to consolidate and post. Once the tellers conduct in the reconciliation correctly, the cheques will not bounce. Additionally, all the above transaction will be reflected in the appropriate accounts. The new features will include an enlarged merging icon, which is visible to all workers. As such, the tellers will no fail