Question 4: Assertion: Capital expenditure in a government budget refers to spending on long-term investments like infrastructure, which do not provide immediate financial returns. Reasoning: Capital expenditures are crucial for economic development and can lead to increased public debt. A) Both assertion and reasoning are true, and the reasoning is a correct explanation of the assertion. B) Both assertion and reasoning are true, but the reasoning is not a correct explanation of the assertion. C) The assertion is true, but the reasoning is false. D) Both assertion and reasoning are false.

Question 4: Assertion: Capital expenditure in a government budget refers to spending on long-term investments like infrastructure, which do not provide immediate financial returns. Reasoning: Capital expenditures are crucial for economic development and can lead to increased public debt. A) Both assertion and reasoning are true, and the reasoning is a correct explanation of the assertion. B) Both assertion and reasoning are true, but the reasoning is not a correct explanation of the assertion. C) The assertion is true, but the reasoning is false. D) Both assertion and reasoning are false.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

provide an assessment of the major requirements of the municipal budget and reporting regulations
Wages, dividends, interest, rent = $500 Households Consumer spending = $400 Taxes = $100 Government Factor markets Goods and services markets A) $0 Government purchases of Exports goods and services = $30 = $100 Reference: Ref 7(22)-1 Figure 7-1: Circular-Flow Model B) $30 C) $60 Wages, dividends, interest, rent = $500 Firms D) $100 Imports = $30 (Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. What are net exports? Rest of world Listen
A) It is possible to attain a higher curve by due to technological advancements. B) Point A is not a feasible option. C) Point A'' dominates point A'. D) It is possible to attain a higher curve by modifying the order in which the technologies are adopted.
Question Five What are public goods? What is a free rider problem? State and explain the characteristic of public goods State and explain the importance of Public Finance Explain any four principle causes of public expenditure growth
Exercise 1 (45%): In the textbook, Model I is the least complicated way to define the relations in the real economy. Then the activity Y is a function of exogenous factors explained outside the model. The model is based on the data found in the National Accounts and is defined as follows: Y= Cp + Ip +G+NX Cp = c(Y-T)+C° Ip = 1° - bi NX = NX° - aY T=T° + tY. Based on such a model I, we establish a general function for the real economy which can then be as follows: Y=T==0+C + 1° + NX° + G - cT° - bi) The elements that are part of the general macroeconomic relationship have the following values: Cp = 0.75 (Y - T) + 1400 Ip = 1250 - 90i NX = 2800 - 0.3Y %3D T= 1200 + 0.19Y G= 2000 i = 1.5. %3D
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Budgeting and financial management are at the core of economic and public sector program in most nation. The Malaysian government budget theme for 2019 is "Credible Malaysian,dynamic economy, prosperous rakyat", focuses on institutional reforms,the people's wellbeing and promotion of entrepreneurial culture. (a) There are FOUR (4) types of budgeting system in public sector. Explain. i) Modified Budgeting System (MBB) ii) Traditional Budgeting System (TBS) iii) Outcome Based Budgeting (OBB) iv) Program and Performance Budgeting System (PPBS) (b) Analyze the advantages and disadvantages of the above FOUR (4) budgeting systems. (c) The Malaysian government aims to reduce the deficit in budget due to expenditure commitment by the previous administration (Star, 2 Nov 2018). Recommend THREE (3) initiatives to the government on how to tackle the problem.
According to economic theory, state governmentsA) will act in the public interest.B) will be biased toward chronic budget deficits.C) will act in the national interest.D) will do all of the above.E) will do none of the above.
The economy of certain country runs a budget deficit of 1% of GDP per annum for 20 years. This situation is: a. Is unsustainable, as it leads to an ever-growing public debt level. b. Is sustainable if the level of GDP growth is no more than 1% per annum on average. c. Is sustainable if the level of GDP growth is more than 1% per annum on average. d. Is unsustainable if the level of GDP growth is more than 1% per annum on average.
Problem 1. Ramsey (a) Rewrite and explain the main equilibrium equations of the Ramsey model assuming the government provides a uniform public good G(t) and finances this expenditure via lumpsum taxes. (b) Analyse the effects on the steady-state and the transition path of a permanent increase government spending; (c) Analyse the effects on the steady-state and the transition path of a temporary increase government spending; (d) Assume now that the government decides to finance public expenditure by taxing investment income at rate τ k . Thus the real interest rate that the households face is now given by r(t) = 1 − τ k f 0 (k (t)) and the government budget constraint is τ kf 0 (k (t)) k = G(t). Repeat the analysis in points [(a)], [(b)] and [(c)].
Question 7 When the federal government gives a grant to a state or local government without restrictions on use, this is known as revenue sharing. endowments. tax shelter.
The government of Ghana has embarked on a fiscal policy route termed "Ghana beyound Aid", which route calls for tax reform if indeed ,Ghana is able to grow and develop without depending extensively on aid. Required a) Realizing that Ghana has undergone three earlier phases of tax reforms, discuss the challenges associated with securing a successful tax reforms. b) Suggest and discuss possible solutions on the way forward in resolving the challenges associated with tax reforms identified in (a) above.