Question

In: Economics

please provide brief explanation for the answers i) TRUE or FALSE. Since education yields private returns,...

please provide brief explanation for the answers
i) TRUE or FALSE. Since education yields private returns, which are fully captured by the person who makes the investment, the market will provide the optimal level of education and the government should not intervene.         ii) TRUE or FALSE. Public goods can be provided privately.      iii) TRUE or FALSE. There is a basic trade-off between efficiency and equity because an efficient outcome may not necessarily be fair.       iv) TRUE or FALSE. The adverse selection phenomenon of market failure is about the actions that agents take in response to certain incentives.    
v) TRUE or FALSE. A tax system should be designed to minimize excess burden.
              vi) TRUE or FALSE. Failure to declare economic activity for tax purposes is a typical case of tax avoidance.              vii) TRUE or FALSE. Every increase in government spending must ultimately be financed by an increase in tax.             viii) TRUE or FALSE. Floating debt is debt in which the principal amount is repaid by the government after a predetermined period of time but interest is paid regularly.
              ix) TRUE or FALSE. One advantage of Zero base budgeting is that it integrates planning and decision making hence leading to a simplification of the entire management system.
x) TRUE or FALSE. Audit control is an important aspect in the control of public expenditure.    xi) TRUE or FALSE. Transfer expenditure relates to the expenditures against which there is a corresponding return. xii) TRUE or FALSE. Mineral royalty tax is an example of an indirect tax.    xiii) TRUE or FALSE. The user fees paid by a patient who seeks medical attention at a health facility do not have quid pro quo.    xiv) TRUE or FALSE. Privatization and deregulation are forms of decentralization.
xv) TRUE or FALSE. A decentralized system has the advantage of fostering intergovernmental competition.

Solutions

Expert Solution

1) false, education yields external returns in addition to the private returns. So investing in education has private as well as external benefits. Adding them both will give you the total benefits or social benefits. Only incorporating the private returns will not give efficient level of investment on education.

2) false, because privately goods are produced for the purpose of profits. Government can provide the public goods because public goods not only have private benefits but some external benefits as well and private firms ignore such benefits and supply inefficient quantity of goods.

3) true, usually increasing efficiency leads to decreasing equity. So there is a basic tradeoff between efficiency and equity.

4) false, adverse selection is the market failure that occurs due to incomplete information rather than incomplete actions for incentive.

5) true, any tax system should have least excess burden to make itself efficient. So tax system should have low excess burden on the supplier or consumers it is placed on.


Related Solutions

TRUE or FALSE. Since education yields private returns, which are fully captured by the person who...
TRUE or FALSE. Since education yields private returns, which are fully captured by the person who makes the investment, the market will provide the optimal level of education and the government should not intervene. ii) TRUE or FALSE. Public goods can be provided privately. iii) TRUE or FALSE. There is a basic trade-off between efficiency and equity because an efficient outcome may not necessarily be fair. iv) TRUE or FALSE. The adverse selection phenomenon of market failure is about the...
Please answers the below True/False and Multiple choice questions from Business Law. (Please provide a brief...
Please answers the below True/False and Multiple choice questions from Business Law. (Please provide a brief explanation to answers if possible) Chapter: Agency Relationships 1. “By definition, independent contractors are not employees.” True/False 2.   John lies and tells Bill that he, John, is Mike's agent, when he is not. Bill enters into a contract with John for the benefit of Mike. Mike can still ratify the contract John entered into for him. True/False 3. In #2 above, when John lied,...
Please answers the below True/False and Multiple choice questions from Business Law. (Please provide a brief...
Please answers the below True/False and Multiple choice questions from Business Law. (Please provide a brief explanation to answers if possible) Chapter: Business Organizations 1.   The business judgment rule does not immunize members of boards of directors from liability to stockholders that come about from the bad business decisions of those directors. True/False 2. Corporations are not required to incorporate under the law of the state where their corporate headquarters is located. True/False 3. The portion of a corporation’s profits...
Please answers the below True/False and Multiple choice questions from Business Law. (Please provide a brief...
Please answers the below True/False and Multiple choice questions from Business Law. (Please provide a brief explanation to answers if possible) Chapter: Securities Law 1.             The first state law regulating the sale of securities was referred to in the book as the Kansas ______ law:                 a.            state securities                 b.             green stock                 c.             red flag                 d.            blue sky 2.             Which of the following best describes the so-called Howey test?                 a.             the investment of money b. a...
Provide in each case a brief explanation articulating why the statement may be true, false or...
Provide in each case a brief explanation articulating why the statement may be true, false or even uncertain. Price stability is a natural long-run monetary policy goal for a central bank much more so than attaining sustainable full employment. (Word limit 300)
Provide in each case a brief explanation articulating why the statement may be true, false or...
Provide in each case a brief explanation articulating why the statement may be true, false or even uncertain. As commercial banks create money through their lending behaviour, there is no limit in practice on how much money they can create. (Word limit 300)
Provide in each case a brief explanation articulating why the statement may be true, false or...
Provide in each case a brief explanation articulating why the statement may be true, false or even uncertain. Quantitative Easing is likely to be riskier as an antidote for the current crisis for emerging economies such as the Philippines, Indonesia, South Africa, Chile, Brazil, and Turkey than for developed economies such as the U.S., UK, Eurozone, Canada, Australia or New Zealand. (Word limit 300)
Provide in each case a brief explanation articulating why the statement may be true, false or...
Provide in each case a brief explanation articulating why the statement may be true, false or even uncertain. Please do not exceed the word limit, only the first 300 words of your answer will be read and marked for each question. Multinational banks whose exposure in foreign markets is primarily through subsidiaries may find it easier to exercise an exit option should losses become too high in the event of a major economic crisis; other banks, however, exposed through branches...
TRUE/FALSE Please indicate whether each question is true or false and provide a 1 sentence explanation...
TRUE/FALSE Please indicate whether each question is true or false and provide a 1 sentence explanation 5. Temperature is associated with terrestrial productivity. If the global temperature increased by 10C we would expect that grasslands would have an increase in both GPP and NPP. 6. In most ecosystems, the rate of phosphorous recycling through fixation exceeds the rate added through weathering. 7. An invasive insect called the Emerald Ash Borer has been killing off ash trees across eastern North America...
Q4. State whether the following are true or false with a brief explanation (1-2 sentences). (i)...
Q4. State whether the following are true or false with a brief explanation (1-2 sentences). (i) Given a control volume with one inlet and two exits, the two exits must have identical mass flow rates. (ii) You are given a control volume with one inlet and one exit such that more ‘mechanical energy’ is coming in than going out (‘mechanical energy’ is the sum of enthalpy, kinetic energy and potential energy per unit mass), but are given no information on...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT