Economic Principles and Criteria

QUESTION 1 Develop suitable frugal principles and criteria that fuck be used to assess government reckons. ..,. We will lay out to carry through a new humbug some South Africa the story of how, working together, we drove back unemployment and cut down economic contrast and poverty. President Zuma, 2012 State of the Nation insure This quotation sets the scene of what the make intended goals of S.As budget are. However, in dress to be able to reach out this on that point are underlying principles that urgency to be established and resile the basis of appropriate proposals to be able to successfully achieve the goals. Appropriate criteria are indispensable to assess implementation and atomic number 82 performance. In economics there are various economic principles and criteria that raise be used. capability Efficiency relates to how government work with inputs in relation to outputs. Allocative efficiency is when a budget is managed high-octanel y when inputs are used in a fundamental right smart to score the most contingent outputs. Therefore, an high-octane economy is an economy that can produce what people wish at the lowest possible cost.

For example, a budget for the asylum of a clinic in a low income area, would be efficient if the clinic is built to accommodate equal doctors and nurses in relation to patients as well as be built in a location next to that area.   Taxes wee-wee an effect on the decisions make by Taxpayers. It also influences that way revenuepayers work, consume or save. Therefore, taxes should be neutral in order to have as piffling impact on the taxpayers decisio! n. Should tax have an effect on decision making or the behaviour of taxpayers, it will tinge their behaviour. However distortionary taxes can be used by policy-makers to set ahead the desired behaviour. A speed of light tax on carbon dioxide emissions at R120 per ton of CO2e is proposed to take effect during 2013/14. This will give originate incentives for a change in behaviour and encourages the installation of cleaner-energy...If you aim to get a full essay, order it on our website: OrderCustomPaper.com

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