6. A town is in financial trouble and is considering imposing user fees for certain services. The current list consists of fire protection, police, schools, parks, and libraries. You are hired to advise them on this from an economist's perspective. For which of these would it be most (least) reasonable to use such an approach to funding? Explain your choices by discussing the effectiveness of a fee on each relative to the concept of a "Public Good" as defined in economics and whether such user fees would provide total funds consistent with the overall social benefit of each?

6. A town is in financial trouble and is considering imposing user fees for certain services. The current list consists of fire protection, police, schools, parks, and libraries. You are hired to advise them on this from an economist's perspective. For which of these would it be most (least) reasonable to use such an approach to funding? Explain your choices by discussing the effectiveness of a fee on each relative to the concept of a "Public Good" as defined in economics and whether such user fees would provide total funds consistent with the overall social benefit of each?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 10PA

See similar textbooks

Similar questions

Answer 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.
Explain briefly why the shape of the demand curve for the public good is downward sloping for HHA and upward sloping for HHB.
Compare and contrast the following concepts and indicate their implications to the provision of local public goods: Tiebout model vs. Lindahl taxes in the context of provision of local public goods
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
Explain the extent of the applicability of social political theory in any economy in public finance
Positive 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
Suppose there are three people in society who vote on whether the government should undertake specific projects. Let the net benefits of a particular project be $150, $140, and $50 for persons A, B, and C, respectively. a. If the project costs $300 and these costs are to be shared equally, would a majority vote to undertake the project? What would be the net benefits to each person under such a scheme? Would total net benefits be positive? b. Suppose the project cost $375 and again costs were to be shared equally. Now would a majority vote for the project and total net benefits be positive? c. Suppose (presumably contrary to fact) votes can be bought and sold in a free market. Describe what kinds of results you might expect in part a and part b.
Distinguish between a carbon-tax and a cap-andtrade strategy for reducing carbon dioxide and other so-called greenhouse gases (that are believed by many scientists to be causing global warming). Which of the two strategies do you think would have the most political support in an election in your home state? Explain your thinking.
True/False Road is a type of public good.
1 (a) Rewrite and explain the main equilibrium equations of the Ramsey model assuming the government provides a uniform public good G(t) and finances this expenditure via lump-sum taxes.
If an excise tax on cigarettes offsets the negative externalities associated with smoking, it means that: a. The Pareto efficient level of smoking will decline. b. The private marginal benefit of smoking will rise. c. The privately efficient level of smoking will equal the Pareto efficient level. d. The private marginal cost of smoking will decline. 9.In the Principal-Agency relationship in health care markets, the _______ acts as the agent for the ________, the principal. a. Government; insurer. b. Insurer; government. c. Health care provider; patient. d. Patient; health care provider. In the presence of external benefits for a health care service, the private market will generally provide: a. The economically efficient level of output. b. Less than the Pareto efficient level of output. c. More than the Pareto efficient level of output. d. The answer depends on the nature of the benefits
Consider the model of a rational consumer that cares about consumption of private goods and consumption of broadcast public television (a public good). Suppose that the total level of broadcast public television provided through voluntary contributions is 10 hours of programming. Then the government decides to raise money through a tax and provide 10 hours of programming to the public. What would we predict about crowd-out of voluntary contributions to broadcast public television when government does this? How would the answer change if consumers get warm glow utility from donating to broadcast public television in addition to utility from the public television itself? (Be specific.)