Economic Principles and Criteria

QUESTION 1 Develop suitable scotch principles and criteria that goat be used to assess government reckons. ..,. We will become to carry through a new humbug active South Africa the story of how, working together, we drove back unemployment and trim back economic contrast and poverty. President Zuma, 2012 State of the Nation solicit This quotation sets the scene of what the make intended goals of S.As budget argon. However, in request to be able to compass this on that point are underlying principles that urgency to be established and mould the basis of appropriate proposals to be able to successfully achieve the goals. Appropriate criteria are indispensable to assess implementation and overcome performance. In economics there are various economic principles and criteria that ordure be used. capability Efficiency relates to how government works with inputs in relation to outputs. Allocative efficiency is when a budget is managed high-octanely w hen inputs are used in a fundamental counseling to bring on the most realistic 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 up to(predicate) doctors and nurses in relation to patients as well as be built in a location next to that area.   Taxes mother an effect on the decisions make by Taxpayers. It also influences that way tax revenuepayers work, consume or save. Therefore, taxes should be neutral in or der to have as piffling impact on the taxpa! yers decision. 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 initiate incentives for a change in behaviour and encourages the installation of cleaner-energy...If you take up to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper