Question

( 1 ) The correspondence principle provides an understanding of how the services ( or public goods ) of government may be organized and delivered . Please describe this principle , and using examples , explain how it can be used in understanding which level of government provides a specific public good

( 2 ) State and Local Government face three fundamental fiscal choices . Please list these choices , and using an example in a specified government program , explain how these choices interact with each other , if at all.

( 8 ) Unless there are economies of scale in the production of government goods and services , they should always be provided by the smallest available government unit ( ie the lowest level government in our federal hierarchy ) . Evaluate this position , supporting your rationale.

( 10 ) The Pareto Equilibrium defines for us what should exist for our economy to be efficient . Please define the equilibrium , and provide a real world example that you are aware of that helps explain the resulting decision making process that leads to this result .

Answer 1