PUB1501

• When analysing markets, a range of assumptions are made about the rationality of economic agents involved in the transactions
• The Wealth of Nations was written


  1776
• Rational


  (in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Producers act rationally by


  Selling goods/services in a way that maximises their profits
• Workers act rationally by


  Balancing welfare at work with consideration of both pay and benefits
• Governments act rationally by


  Placing the interests of the people they serve first in order to maximise their welfare
• Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
• A firm increases advertising

  Demand curve shifts right
• Demand curve shifting right

  Increases the equilibrium price and quantity
• Marginal utility


  The additional utility (satisfaction) gained from the consumption of an additional product
• If you add up marginal utility for each unit you get total utility
• The motorist who assaulted the taxi driver would have wanted the taxi driver to get out of the vehicle
• The taxi driver would have wanted the police or other authorities to intervene in this particular case
• These types of events affect the community's needs in Durban by reducing public safety and order
• These types of events affect the needs of society as a whole by undermining the rule of law and social cohesion
• The possible increase of national government's spending on higher education is not an ideal situation as it may not be financially sustainable
• Ideal situation


  One where higher education is affordable and accessible to all who need it, without overly burdening the government budget
• The need involved is for affordable, high-quality higher education
• Other needs that society experiences

  • Housing
  • Social services
  • Pensions
  • Economic growth
  • Industrial development
  • Technological progress
  • Clean and safe environment
  • Sound foreign relations
  • Strong trade relations
• A need refers to an imbalance in circumstances, such as high crime rate, illiteracy, poverty, epidemics, or environmental pollution

  
• When there is a need for something, there is a demand for it, it is necessary, and sometimes there is even an inner desire for it
• Societies, especially in Africa, have numerous needs
• Poverty is one of the most pressing needs in the "South", and the state through public administration has an important role to play in addressing it
• Public administration is guided by the variety of needs present in a society
• State


  A nation or territory considered as an organised political community under one government
• State


  • Has its own territory
  • Population
  • Government
  • Sovereignty
• The permanent population of a state is usually known as the citizens of the state
• Citizens of other states may also form part of the population of a specific state, but they are guests and usually do not enjoy the same rights and privileges as the citizens
• Forms of state


  • Unitary
  • Federal
  • Confederal
• The form of state affects the way in which the authorities provide a service to society
• Not all the activities of the citizens of a state take place under the "umbrella" of the state. There are such things as a private life and a public life
• Public administration may be regarded as a service to the citizens to ensure that they will be able to lead happier and more perfect private and public lives
• Some Western welfare states are apparently no longer willing to function as the general agency for the collective happiness of their citizens. They accept that the individual has certain responsibilities and a capacity for self-help
• The government is responsible for ensuring a life of natural perfection for the citizens of a state
• Public administration forms part of this process of service to society
• The government is expected to provide housing for the poor
• The government is expected to provide protection

  
• Categories of public services

  • Protective services
  • Wealth-creating services
  • Public health, welfare and housing services
  • Cultural and educational services
  • Environmental conservation services
• Protective services are aimed at protecting society and the possessions of its members as well as the state against threats from outside the national borders, and against any form of injustice within the national borders

  
• Wealth-creating services of the state include services provided by departments such as Trade and Industry, and Agriculture, Forestry and Fisheries