Discussion Question

The Government monitors and regulates businesses in both the public and private sectors, to ensure they are complying with Federal, State and local rules and regulations. The result of these regulations can be referred to as positive or negative externalities. Provide an example of positive and negative externalities in the police (public) sector. What kind of impact can these externalities have on a budget and the people responsible for creating the budget? Your initial post should be at least 250 words in length

Solution Preview

Some of the advantages of a line-item budget in law enforcement are it offers simplicity. It allows for easy budgeting for individual areas within a police department using information based on historical expenses got from the previous year.

(387 words)