Question

The McDougall Rule, in the context of public finance, primarily suggests that:

Q: Answer-The McDougall Rule, in the context of public finance, primarily suggests that:

The McDougall Rule, in public finance, primarily suggests that the spatial distribution of public expenditure should aim to equalize marginal social benefits across different regions, considering differing needs and costs. This rule advocates for an allocation of public funds that maximizes overall welfare by ensuring that the last unit of expenditure in each region yields the same social benefit.

A Government spending should always be less than government revenue to avoid fiscal deficits.

B Public goods should only be provided if their social benefits exceed their social costs, regardless of who pays.

C The spatial distribution of public expenditure should aim to equalize marginal social benefits across different regions, considering differing needs and costs.

D Taxation should be progressive, ensuring that higher-income individuals contribute a larger proportion of their income to government revenue.

Practice Next

More Research Questions

In the Heckscher-Ohlin (H-O) Model of international trade, the Stolper-Samuelson Theorem predicts the long-run effect of opening to trade on factor returns...
Which of the following is not true Monopoly form of market organization may be result of increasing returns to scale Monopoly form of markets organi...
In a market economy 
Offer curve introduced by Alfred Marshall deals with :
Consider the following Utility function U(x,y) = 4x+5y. The price of x and y are 5 and 6 respectively. The income of the consumer is 120. Calculate the max...
The National Pension System (NPS), which provides retirement savings and pension benefits to individuals—including Central Government employees recruited o...
Which of the following Bank has been authorized by the Reserve Bank of India to collect direct and indirect taxes on behalf of the Central Board of Direct ...
C= 0.8(1-t)Y , t=0.25, I=200 and G=800. Calculate the change in output when tax rate increases to 0.50
Oligopolies can end up looking like competitive markets if the number of firms is
At price of Rs.5 quantity demanded is 10 units and at price of Rs.6, demand is 8 units. Calculate the market demand when price is Rs.4

Hey! Ask a query

The McDougall Rule, in the context of public finance, primarily suggests that:

Detailed Solution

More Research Questions

Hey! Ask a query

Please Register/Login