(5 points) Diagram and briefly explain the private mar">

Question Details

[solution] » (20 points) The City of Smartsville is deciding how much money "E" to spend on public education.<


Description

Answer Download


The Question

(20 points) The City of Smartsville is deciding how much money "E" to spend on public education.

(5 points) Diagram and briefly explain the private market failure for education, that is, why education would be underprovided if financed exclusively by private contributions.

(5 points) As a result of the analysis in (a), the City decides to provide some level of public education ("E"). Three levels of provision are considered: Low (L), Medium (M), and High (H). The expense "E" will be financed through a lump-sum tax on each household. There are three types of households (A,B,C) with heterogeneous preferences over spending on education. There are an equal number of each household. Household preferences over each level of spending are given:

Households A have preferences: L > M > H

Households B have preferences: L > H > M

Households C have preferences: H > M > L

Would pair-wise voting result in a stable (consistent) outcome E* (cite a relevant concept from the course)? If so, determine provision level E* and demonstrate that this outcome is indeed stable (consistent).

(5 points) Suppose that pair-wise voting results in a stable (consistent) outcome E* Is this level of provision of E necessarily socially optimal? Explain.

(5 points) Suppose that in the United States, there are many cities, and each city independently determines its own level of local spending on public education. Explain why each city may establish the (locally) socially optimal level of provision? Discuss two plausible reasons why this may not occur.


City of SmartsVille

 

Part 1

 

The marginal benefit of the government increasing its expenditure on education and other

 

basic services is usually zero as the government does not benefit directly from...

 


Solution details

Solution #00020273

[solution] » (20 points) The City of Smartsville is deciding how much money "E" to spend on public education.<.zip

Uploaded by: Tutor

Answer rating:

This paper was answered on 14-Oct-2020

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Oct 14, 2020

EXPERT

Tutor

ANSWER RATING

BEST TUTORS

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

STUCK WITH YOUR PAPER?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now