Question
true or false questions 1. efficiency requires that marginal revenue be equal to marginal cost. 2. congestible public goods cannot be privately and competitively supplied.
true or false questions
1. efficiency requires that marginal revenue be equal to marginal cost.
2. congestible public goods cannot be privately and competitively supplied.
3. The use of a pure public good by one more member of the society does not reduce it's availability to the others.
4. Governments can solve the free rider problem by making payments for public goods compulsory through taxes.
5. Demography, market failure and equity considerations have been major factors in the changing public expenditure according to the developmental models of public expenditure growth.
6. A direct tax is paid when income is spent.
7. The benefit principle on which user prices are based might be regarded as unjust because people pay the same user prices independent of income.
8. A robust macroeconomic framework is the only requirements to access a policy based guarantee.
9. In an activity based budget, a justifying statement of benefits to taxpayers is required, even if no market exits to value the benefits.
10. One disadvantage of decentralized provision of public services is that it fosters intergovernmental competition.
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