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700874 Public Sector Finance, Taxation and Accounting

Tutorial 5

Public Sector Finance

Tasks

1. Please read the relevant chapters for the public finance text.

2. See if you can find equivalent figures for the share of government in GDP for
some non-OECD countries to those presented in slide 4 of lecture 5.

3. Compare the share of government in GDP from your chosen countries with
that of the UK and US. Explain why you think there are differences.

Questions to consider

 Do you think that governments should be involved in an economy?


 Why do you think there are different levels of involvement for different
countries?
 How does the efficiency of tax collection affect decisions as to the level of
government involvement?

Group Activity in the tutorial – to be discussed

DISCUSSION QUESTIONS - group work

1. Discuss, in your groups, whether it is only the existence of pure public


goods that provide a rationale for government intervention.

2. Explain whether it is only market failure that warrants government


intervention

3. Given the possibility of government failure, do you think that we should


be considering means to reduce government involvement in
economies?

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