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- Compare and contrast the Equity Theory vs. the Attribution Theory.What are the equity issues associated with the preferential tax treatment of nonprofits? What is the principal-agent problem and why to scholars believe that it is more pronounced with a government bureaucracy than with a private firm? And explain what is the tax price for donations?Why does the goal of efficiency conflict with equity?
- Describe the difference between a property rule and a liability rule? What legal enforcement mechanism is most appropriate for either one?Explain any two causes of underdevelopment operating in the economy?Your professor has decided that, from now on, students who receive less than a 60 percent grade onany exam will be eligible to go to a review session. Ifthey attend the session, they will receive an extra 10percent on their grade. You see a problem with thispolicy, and instead propose to your professor thatpeople who go to the review session should receive50 percent of the difference between their grade and60 percent. Explain why this situation represents atrade-off between equity and efficiency
- Is there equal opportunity of economic advantage according to procedural fairness?2. Why does sharecropping continue to exist as opposed to laborers renting land and paying for the rent with the proceeds of their harvest? Sharecropping is a farming system in which owners of the land allow others to farm it and then the harvest is split, with some portion (let's say half) going to the laborer and some to the land owner. Renting land (the "English system") is an alternative in which laborers pay a fixed monetary rent and then keep all of the proceeds of their production. For hundreds of years commentators have pointed out that sharecropping lowers overall investment and effort and that renting both generates more revenue for owners and, on average, more revenue for laborers due to the harvest generally being much larger. However, when prices drop significantly for agricultural outputs, rents can exceed the total value of output under the English system. Given that in the English system rent returns more money to land owners and on average generates more income…[Income Distribution]What is meant by the trade-off between equity and efficiency? Is there always such a trade-off ?
- Read the following extract and answer the question? Women’s empowerment movement eyes 40% of government spending accreditation…Last year the South African government affirmed its support for women-owned businesses as part of its commitment to ensuring that gender equality in Africa’s most advanced economy was achieved.President Cyril Ramaphosa said then: “We are going to drive women’s economic inclusion through public procurement. We have set the target of ensuring that 40% of goods and services procured by public entities areprocured from women-owned business.” The above decision by the South African government is an example of…a) Market participation.b) Government spending.c) Commercialisation.d) Nationalisation.Which of the following is a reason to deviate from the Haig-Simons comprehensive income definition because of correcting externalities? a- Imperfect information b- Charitable giving c- Consumer sovereignty d- Medical expensesWhat are the tax benefits of nonprofit status? Or in other words, how does the U.S. tax code subsidize the nonprofit sector? In addition, what are the arguments in favor of preferential tax treatment for nonprofit firms?