In many models, the amount of government offered services that is socially and economically efficient tends to be much smaller than that is actually produced and given to the people. Discuss why this appears to be the case, and show with a graph where the efficient level of government output would lie with respect to actual output. Do you understand why historically, the level of government services provided tends to rise irrespective of what the efficient level ought to be? Why would this be? Note:- Do not p

In many models, the amount of government offered services that is socially and economically efficient tends to be much smaller than that is actually produced and given to the people. Discuss why this appears to be the case, and show with a graph where the efficient level of government output would lie with respect to actual output. Do you understand why historically, the level of government services provided tends to rise irrespective of what the efficient level ought to be? Why would this be? Note:- Do not p

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter16: The Public Sector

Section: Chapter Questions

Problem 1SQP

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In many models, the amount of government offered services that is socially and economically efficient tends to be much smaller than that is actually produced and given to the people. Discuss why this appears to be the case, and show with a graph where the efficient level of government output would lie with respect to actual output. Do you understand why historically, the level of government services provided tends to rise irrespective of what the efficient level ought to be? Why would this be?
Question 1 Consider an economy with two firms and a government. Firm 1 produces 10000 units of good X, which it sells for $20 per unit. It uses this revenue to pay $140000 in wages, $10000 in taxes, and $10000 in interest on a loan, with the rest as profits. Firm 1 sells some of its output to consumers, and some to Firm 2 as an intermediate good in their production process. Firm 2 uses good X as an input into its manufacturing process. It buys 8000 units of good X and uses them to create 1000 units of good Y, which it sells for $400 per unit. It pays $200000 in wages and $20000 in taxes, with the rest as profits. The government takes in taxes from only these two firms, and uses it to pay wages to provide government services, for instance national defense. Please calculate GDP using the three different methods. (Of course, you'll arrive at the same answer; however, indicate clearly what values you're using in each case to arrive at the final answer, so as to illustrate you know what is…
Briefly explain any three economic roles of a government
There are several books that cover important information to validate the fact that LOCAL government IS the level of government that has a MUCH GREATER impact on the daily lives of Americans than any other level of government and ironically it is the level of government that gets the least attention from the public and from the media. Participation in local government affords citizens the most control over their own lives but unfortunately it is the level of government with the least voter turnout. Sad but true. Answer the following question: Texas is one of seven states without a state income tax. Should Texas establish a state income tax? Explain 3 advantages and 3 disadvantages and your stand on this issue.
How does the problem of limited and bundled choice in the public sector relate to economic efficiency? Why are public bureaucracies alleged to be less efficient than private enterprises?
Please elaborate on the economic role of the government under the two different economic theories of "laissez-faire" and "government intervention". What kind of theory do you think the Hong Kong Special Administrative Region Government pursues? why?
8. Agreement and disagreement among economists Suppose that Raphael, an economist from a business administration program in Georgia, and Susan, another economist from a nonprofit institution in the Midwest, are both guests on a popular science podcast. The host of the podcast is facilitating their debate over government intervention. The following dialogue represents a portion of the transcript of their discussion: Susan: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate. Raphael: I feel that government involvement in the economy should be reduced because government programs cause more harm than good. Susan: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate. The disagreement between these economists is most likely due to differences in values Despite their differences, with which proposition are two economists chosen at random most likely to agree?…
43. Use the graph to answer the question that follows.Which of the following can cause the relationship shown between MSC and MPC? A decrease in financial instability from unlawful investing An increase in investment to support educational funding A decrease in fish population caused by overfishing a lake A decrease in air pollution caused by a nuclear energy plant An increase in research and development funding of a product 44. A perfectly competitive market will not produce the socially optimal quantity in long-run equilibrium if there are external costs or benefits along with unclear property rights there is no government intervention the government institutes a lump-sum tax or lump-sum subsidy the individual firms have achieved minimum efficient scale there is perfectly symmetric information
PLEASE HELP need help responding to this discussion post, neeeds to be at least 150 words. thank you "A free-market economy is withdrawn from government, in other words, it’s privately owned and thus companies in a free-market economy make their own decisions. This leads to a close relationship between demand and price; the higher the demand is the higher the production and price will be, same thing if the demand is low. The consumer is entirely in charge of the market. This is only possible though because of restrictions that the government sets on companies ensuring that no one attempts to monopolize a resource. In so doing the government is avoiding what could lead to economic crisis. On the other hand, state-directed economies or, as the book refers to them, Command economies, the government may as well own the market. The government decides what kind, and how much of goods and services the country will produce as well as the price set for the product. In this economy style the…
Please help me answer this business ethics question. Explain briefly 1: [Influence of Business on Government] Using two examples, explain when influence of business on government can become corrupt and what the implications of such influence are on wider society.
How does the problem of limited and bundled choice in the public sector relate to economic efficiency? Why are public bureaucracies possibly less efficient than business firms?
True or false and use a graph to explain: a) can it be welfare-improving for governments to undertake investments that would not be profitable for private firms? b) when there is congestion, do you think a toll road can lead to a higher level of social welfare than a freeway, but in the absence of congestion, freeways are better than toll roads?