1) Explain how problem of the limited and bundled choice within the public sector is related to the economic efficiency? Why the public bureaucracies are alleged to be less efficient than the private enterprises?
3) Describe: ‘Politicians would form more rational economic decisions if they would not running for the re-election after every few years.” Specify if you favor the term limits for elected officials?
4) Write down the differences between the benefits received and capability to pay the principles of taxation. Which of the philosophy is more evident within our current structure of tax? Explain and justify your answer. Which principle of taxation will you subscribe? And Why?
5) Assume a tax is such that the individual having an income of $10,000 pays $2,000 of tax, a person having an income of $20,000 pays $3,000 of tax, and a person having an income of $30,000 pays $4,000 of tax, and so on. Specify what is each person’s average tax rate? Whether this tax is regressive, proportional, or the progressive