Public Finance defined Public finance is about the taxing and spending activities of the government Also known as"public sector economics"or"public economIcs Focus is on microeconomic functions of government polices that affect overall unemployment or price levels are left for macroeconomics Scope of public finance unclear - government has role in many activities, but focus will be on taxes and spending2 Public Finance Defined • Public finance is about the taxing and spending activities of the government. • Also known as “public sector economics” or “public economics.” • Focus is on microeconomic functions of government – polices that affect overall unemployment or price levels are left for macroeconomics. • Scope of public finance unclear – government has role in many activities, but focus will be on taxes and spending