财务学教材演习题[优质文档].docVIP

Instructor’s Manual to accompany Public Finance Seventh Edition Suggested Answers to Discussion Questions and Sample Exams by Harvey S. Rosen March 2004 ?McGraw-Hill/Irwin 2004 Suggested Answers to Discussion Questions Some of the questions have no single “correct” answer – reasonable people can go off in different directions. In such cases, the answers provided here sketch only a few possibilities. Chapter 1 1. a. Putin’s statement is consistent with an organic conception of government. Individuals and their goals are less important than the state. Rehnquist makes a clear statement of the mechanistic view of the state. 2. a. A person with an organic conception of the state might react favorably, arguing that even if an individual owner is worse off because he must show only French movies, the nation is better off because it achieves more unity. A libertarian would certainly reject this policy and the reasoning behind it--there is no “national interest” independent of the interests of individuals, and people should have the right to run their lives in the way that they prefer--including seeing whatever movies they want. A Social Democrat would try to balance these two aims, and it is hard to predict how he or she would come out. 3. Mechanistic view of government says that the government is a contrivance created by individuals to better achieve their individual goals. Within the mechanistic tradition, people could disagree on the obesity tax. Libertarians would say that people can decide what is best for themselves. They do not need prodding from the government. In contrast, social democrats might believe that people are too short sighted to know what is good for them, so that government-provided inducements are appropriate. 4. a. If the size of government is measured by direct expenditures, the mandate does not directly increase it. Costs of compliance, however, may be high and would appear as an increase in a “regulatory budget.” It’s hard to say whether t