« previous next »

Author Question: Make an argument for user charges being both efficient and equitable. What information can user ... (Read 229 times)

mckennatimberlake

  • Hero Member
  • *****
  • Posts: 559
on: Jul 1, 2018
Make an argument for user charges being both efficient and equitable. What information can user charges provide us that free provision can not?
 
  What will be an ideal response?

Question 2

A horizontal demand curve for a good could arise because consumers
 
  A) are irrational.
  B) are not sensitive to price changes.
  C) view this good as identical to another good.
  D) have no equivalent substitutes for this good.


Edwyer

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jul 1, 2018
Answer to Question 1

User charges can be considered equitable from the benefit principle of taxation since individuals have to pay in proportion to the benefits they receive from the good. From an efficiency perspective, user charges can be considered efficient because they act as a price for public sector output so they minimize the excess burden of taxation. Contrary to free public provision, user charges help give an idea of consumer demand for a good so that policymakers can provide the amount of the good in line with that revealed demand.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Sharing patient information with colleagues is an important nursing role Sharing patient information with colleagues is an important nursing role
Children make a fast adjustment to a new culture, although, as with these Hmong children in ... Children make a fast adjustment to a new culture, although, as with these Hmong children in ...
Organizing Drug Information by Therapeutic Classification Organizing Drug Information by Therapeutic Classification
The location of the variable fuel sensor can vary, depending on the make and model of vehicle, but ... The location of the variable fuel sensor can vary, depending on the make and model of vehicle, but ...
How Many Triangles Can You Make Using the Letter M and 3 Straight Lines? How Many Triangles Can You Make Using the Letter M and 3 Straight Lines?
Prove the argument using two column proof number 5 only Prove the argument using two column proof number 5 only
Video: Sister chromatids of a metaphase chromosome animation

For a complete list of videos, visit our video library