Managerial Economics
Managerial Economics
5th Edition
ISBN: 9781337681599
Author: Luke M. Froeb; Brian T. McCann; Michael R. Ward
Publisher: Cengage Limited
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Chapter 10, Problem 10.4IP
To determine

The five forces model to analyze the attractiveness of an industry.

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17. The South African government's distributive stance is clear given its prioritisation of social spending, which includes grants and subsidised goods. Discuss the advantages and disadvantages of an in-kind subsidy versus a cash grant. Use a graphical illustration to support your arguments. [15] 18. Redistributive expenditure can take the form of direct cash transfers (grants) and/or in-kind subsidies. With references to the graphs below, discuss the merits of these two transfer types in the presence and absence of a positive externality. [14] 19. Expenditure on education and healthcare have, by far, the biggest redistributive effect in South Africa' by one estimate dropping the Gini-coefficient by 10 percentage points. Discuss the South African government's performance in health and education provision by evaluating both the outputs and outcomes in these areas of service delivery. [15] 20. Define the following concepts and provide an example in each case: tax rate structure, general…
Summarise the case for government intervention in the education market
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