Author Question: The use of a property tax to fund public schools is an example of _____. a. the benefit principle ... (Read 100 times)

stock

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The use of a property tax to fund public schools is an example of _____.
 
  a. the benefit principle at work
  b. the ability-to-pay principle at work
  c. a compromise between the benefit and ability-to-pay principles
   d. the Ramsey rule at work

Question 2

Describe the relationship between marginal productivity and average productivity. Use calculus or a graph to support your answer.
 
  What will be an ideal response?


sarajane1989

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Answer to Question 1

c

Answer to Question 2

AP = Q(L)/L. dAP/dL = (L  MP - Q) /L2 = (MP - AP)/L. Thus, if MP = AP, AP is constant.
If MP > AP, AP will rise. If MP < AP, AP will fall.



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