Question

#1: Define Natural, Human, Social and Financial/Physical capital.

4 sentences, 1 on each

#2: As engineers should we be prepared to discuss,

debate and understand how our Government makes its

decisions on allocated Government revenue.

Paragraph

#3. When doing a CBA analysis is it important if the

party paying the cost does not enjoy the benefit?

2/3 sentences

Answer 1

1 :-

Natural Capital is any stock or flow of energy and material that produces goods and services. It includes:

• Resources - renewable and non-renewable materials
• Sinks - that absorb, neutralise or recycle wastes
• Processes - such as climate regulation

Natural capital is the basis not only of production but of life itself.

Human Capital consists of people's health, knowledge, skills and motivation. All these things are needed for productive work.

Enhancing human capital through education and training is central to a flourishing economy.

Social Capital concerns the institutions that help us maintain and develop human capital in partnership with others; e.g. families, communities, businesses, trade unions, schools, and voluntary organisations.

Financial Capital plays an important role in our economy, enabling the other types of Capital to be owned and traded. But unlike the other types, it has no real value itself but is representative of natural, human, social or manufactured capital; e.g. shares, bonds or banknotes.

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2 :-

The federal budget is one of the most important policy instruments of our government. Policymakers use the federal budget process to establish spending priorities and identify revenue to pay for those activities. The size and scope of the decisions make the budget process one of the most important and complex exercises in public policy making. The federal government finances its operations with revenues, including taxes, fees, and other receipts collected from many different sectors of the economy. In 2015, total federal receipts were $3.3 trillion, about 18% of GDP. The largest sources of tax revenue are the individual income tax and payroll taxes, followed by the corporate income tax, the excise tax, and estate and gift taxes.