The optimal size of government is theoretically determined by following the principal that additional public sector activity is desirable only if the benefits of that activity exceed its opportunity cost. Valuation Problems Because of an absence of a price signal for government goods, it is sometimes very difficult to put a monetary value on the benefits of government goods. Who is paying for them and who is benefitting from them
The optimal size of government is theoretically determined by following the principal that additional public sector activity is desirable only if the benefits of that activity exceed its opportunity cost. Valuation Problems Because of an absence of a price signal for government goods, it is sometimes very difficult to put a monetary value on the benefits of government goods. Who is paying for them and who is benefitting from them
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter16: Government Spends, Collects, And Owes
Section: Chapter Questions
Problem 14AA
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The optimal size of government is theoretically determined by following the principal that additional public sector activity is desirable only if the benefits of that activity exceed its opportunity cost .
Valuation Problems
Because of an absence of a price signal for government goods, it is sometimes very difficult to put a monetary value on the benefits of government goods.
Who is paying for them and who is benefitting from them
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