Discuss the rationale and the effect of the Direct Subsidy Scheme in secondary education. What are its features and the pros and cons of the scheme? What is your position on the scheme? It has been almost 20 years since the Education Department proposed the Direct Subsidy Scheme(DSS) in Hong Kong. In 1988‚‚ the Education Commission Report No. 3 proposed the DSS in a bid to build a strong private sector in the provision of education and offer more choices to the parents. It is good to strengthen
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What is the formula for measuring price elasticity of demand? Percentage change in quantity demanded / Percentage change in price When the price elasticity coefficient is less than 1‚ the percentage change in quantity demanded is smaller than the change in price. When the price elasticity coefficient is equal to 1‚ the percentage change in quantity demanded is equal to the change in price. When the price elasticity coefficient is greater than 1‚ the percentage change in quantity demanded
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Market Failure "As long as producers and consumers act as perfect competitors‚ that is‚ take prices as given‚ then under certain conditions‚ a Pareto efficient allocation of resources emerges" - Fundamental Theorem of Welfare Economics Pareto Efficient Allocation is a point of efficiency‚ wherein the only way to make one agent better off is to make others worse off Governments have two reasons for their activity - Tax Collection and Public Expenditure - Regulate Market Failures Market Failure -
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European transition economies. Tourism does not only bring in massive hard currencies‚ which transition economies desperately need‚ but also receives tremendous foreign direct investment (FDI)‚ which transition states could possibly benefit from the spillover effects. This paper examines the tourism industry in Hungary after the collapse of Communism in 1989. Firstly‚ it outlines the important role tourism plays in Hungary during transition period. Secondly‚ it analyzes the economic impact brought
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labour force. A greater labour input will mean on average‚ higher incomes for households. In the long run‚ consumers will increase their expenditure with more spending power‚ driving economic growth. When subsidies are implemented‚ the burden on taxpayers increases to offset the cost of the subsidy. More working women will generate more tax revenue for governments‚ allowing the government to charge significantly less tax to Canadian
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Objectives Subsidies‚ by means of creating a wedge between consumer prices and producer costs‚ lead to changes in demand/ supply decisions. Subsidies are often aimed at : 1. inducing higher consumption/ production 2. offsetting market imperfections including internalisation of externalities; 3. Achievement of social policy objectives including redistribution of income‚ population control‚ etc. Effects of subsidies Economic effects of subsidies can be broadly grouped into 1.Allocative effects:
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Economics Unit 1 Review Economics – the study of how to distribute scarce resources among competing ends Microeconomics – focuses on individual consumers and businesses Macroeconomics – takes a broad view of the economy 3 Basic questions any society must answer * What to produce * How to produce * For whom to produce Economists assume that economic decision makers maximize their own utility. Utility is the satisfaction or pleasure from any action. Economists assume the
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favor of government intervention 3. Cluster theory suggests that companies obtain resources as a result of geographic proximity to other related and supportive industries primarily as a result of: a. Information spillovers b. Lower shipping costs c. Region specific subsidies d. Access to a common labor pools 4. A theory of internationalization‚ observed in the wine industry in the assigned readings‚ that focuses on the development of relationships between producers‚ suppliers‚ competitors
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making output and resource allocation decisions. However‚ there are solutions to externalities. Firstly‚ the solution to misallocation of resources is clear. An external cost‚ for example‚ should be reduced up to the point where marginal spillover costs saved by any further reduction just equal the marginal lost profits from the externality generating activity. Similarly an action that
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reviews the empirical evidence on the very different conclusions that can be drawn about productivity spillovers of foreign direct investment. It explains the concept of host country spillover benefits‚ describes the various forms these benefits can take‚ both within and between industries‚ and summarizes the evidence regarding the relative magnitudes of the various forms of spillovers. Moreover‚ the paper discusses host country policy measures which can accelerate both the BC affiliates
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