Question

Please answer all.

86. What is the controversy surrounding property taxes as a source for school funding?

87.   What is the relevance of the marginal productivity principle in explaining the use of inputs in production?

Answer 1

1 - The property taxes are levied on the property owned and then these amout are used as the aid to run the school. This amout is separate from the state and other funding . The controversy is that many people are not able to pay this because of very less income levels , very low property unlikely the high income levels. This results in the increase in inequality and school dropouts by the low income group students

2 - As per the marginal productivity principle , the MP drops as more and more units of inputs are employed , the MP rises initially , starts falling and falls till it becomes negative.

The inputs need to be employed only upto the level where MP becomes zero. At this level TP will be maximum. After this point inputs should not be employed as this would start giving the negative returns.