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- 1) True-False-Uncertain. Respond to following statements as True, False, Uncertain and justify your claim. According to the Coase Theorem, government intervention is needed to solve externalities. It always makes sense when a public good is financed by the government. If A is Pareto efficient and B is Pareto inefficient, A must be a Pareto improvement over B. According to Arrow’s impossibility theorem, a democratic society will always make consistent decisions.Describe and explain Samuelson’s general equilibrium model with one pure public good and one private good using the diagrammatic framework. Derive the efficiency condition which emerges.Give only typing answer with explanation and conclusion to all parts In the lectures, we dealt in detail with Ronald Coase's theorem developed in his article "The Public Price Problem". The next few questions are related to her. Answer whether the following statements are true or false by circling the appropriate word under each statement: According to Coase's theorem, static and dynamic efficiency are guaranteed in a society with sufficiently low transaction costs. True False According to Coase's theorem, with sufficiently high transaction costs, even static efficiency is not guaranteed. True False According to Coase's analyses, transaction costs matter because their size affects the scale of the market and hence (according to Smith) wealth. True False According to Coase's analyses, transaction costs matter because they influence firms' decisions about what final product to produce. True False
- 1) True-False-Uncertain. Respond to following statements as True, False, Uncertain and justify your claim. Answers that do not provide justification will receive zero points. According to the Coase Theorem, government intervention is needed to solve externalities. It always makes sense when a public good is financed by the government. If A is Pareto efficient and B is Pareto inefficient, A must be a Pareto improvement over B. According to Arrow’s impossibility theorem, a democratic society will always make consistent decisions.Question Five What are public goods? What is a free rider problem? State and explain the characteristic of public goods State and explain the importance of Public Finance Explain any four principle causes of public expenditure growthAnswer the given question with a proper explanation and step-by-step solution. Does the fact that public decisions are sometimes made by self-interested politicians and bureaucrats undermine the efficiency of public-sector decision making? Discuss in detail.
- True-False-Uncertain. Respond to following statements as True, False, Uncertain and justify your claim. Answers that do not provide justification will receive zero points. a) According to the Coase Theorem, government intervention is needed to solve externalities. b) It always makes sense when a public good is financed by the government. c) If A is Pareto efficient and B is Pareto inefficient, A must be a Pareto improvement over B.Cost-benefit analysis is a way to: A minimize the cost of producing a given amount of government services. B rank projects according to their marginal net benefits. C increase government spending. D maximize the output of government.Redistribution of funds across communities to finance public goods makes sense when the Tiebout model ____ and communities are ____ in their abilities to raise funds. a-fails/unequal b-fails/similar c-holds/unequal d-holds/similar
- Emission charges and cap-and-trade systems are the two dominant market incentive-based approaches for the reduction of emissions. Describe how an emission charge or tax works. Describe how a cap-and-trade system works. Contrast the two systems: what are the fundamental differences between them? Do those differences matter? Provide two examples of jurisdictions that impose a carbon tax. Provide two examples of jurisdictions that imposes a cap-and-trade regime. As the manager of a business that produces emissions, which system would you prefer to face? Why?Question 26 Without government intervention, public goods tend to be Group of answer choices overproduced (compared to demand) underproduced (compared to demand) produced at exactly right amount to meet demandPositive Externalities - Public Expenditure and Market Failure Explain verbally and with a graph the concept of Positive Externalities. Explain all elements of the graph, and give an example for a real world public expenditure that can be justified on the basis of this concept. Give an explanation in your own words, and in a way, that shows that you understood the graph