33 Questions
In the context of social justice, what must in-kind transfers be accompanied by?
Strong efficiency justifications
Which factor should be considered when deciding to use in-kind transfers for distributional purposes?
Individual autonomy
When is the use of in-kind transfers potentially justified according to the text?
To address horizontal inequity
What should be evaluated when deciding to use in-kind transfers based on the text?
Context-specific factors
Why should the use of in-kind transfers for distributional purposes be carefully assessed?
To consider trade-offs involved
What is one of the main functions of the welfare state described in the text?
Reducing social exclusion
Which of the following best describes the 'Piggy Bank function' of the welfare state as mentioned in the text?
Safeguarding retirement savings
Why does the text mention that we would still need a welfare state even if poverty were eliminated?
To perform tasks the market cannot
What distinguishes contributory benefits from non-contributory benefits in the context of the welfare state?
Income eligibility criteria
How do benefits in kind differ from cash benefits within the welfare state described in the text?
Benefits in kind include education and healthcare
According to economic theory, why does the welfare state have a role in social policy regarding equity and efficiency?
To mitigate inequality
What aspect should a welfare system address to reduce inequality?
Social exclusion
What role does the welfare state play in addressing market failures?
Promoting social equity
In a Beveridgean system, how is health care funded?
Through tax revenues
Which statistical measure is used to assess the effectiveness of a welfare system?
Headcount below the poverty line
What principle should a welfare system abide by to ensure easy understanding?
Intelligibility
What objective does the Bismarckian system aim to achieve through contributions from employees and employers?
Covering a defined package of services
What is a major argument in favor of providing Benefit-In-Kind (BIK) over income transfers according to the text?
BIK leads to better outcomes than income transfers.
What is a common argument against Benefit-In-Kind (BIK) as mentioned in the text?
BIK may not be effective if easily substitutable with other resources.
Which term refers to the phenomenon where means-tested benefits can create welfare dependency as discussed in the text?
Unintended consequences
Why is achieving social justice considered one of the objectives of policy, as per the text?
To ensure equal distribution of income
What should the choice of method depend on after agreeing on the objective of policy?
Which method maximizes social welfare
What is a potential issue associated with frequent changes in government according to the text?
Consistency in policy approach
What conditions must hold in a first-best economy, according to the text?
Perfect competition, no externalities, and imperfect information
Which theorem shows that under certain conditions a competitive market can lead to a Pareto efficient allocation of resources?
The Invisible Hand Theorem
What behavior takes advantage of asymmetric information before a transaction, according to the text?
Adverse selection
Which concept involves impure public goods and merit goods?
Incomplete markets
In the context of market failure, what type of intervention may be justified on efficiency grounds?
Mixed public/private provision
What situation does asymmetric information refer to?
One party having more information than the other in a transaction
'Bounded rationality' and 'bounded will-power' are concepts associated with which area of economics?
Behavioral economics
'Pigouvian taxes/subsidies' are most closely related to which aspect of finance in the text?
'Externalities'
'Regulation' as a form of state intervention is particularly important when:
'Knowledge is imperfect'
'Cash benefits (Consumption Smoothing/Insurance)' are associated with which type of welfare state provision?
'Private sector solution'
Explore the challenges confronting the welfare state, including population ageing, globalisation, and rising expenditure. Learn about the impact of factors like demographic change, changes in family structure, and technical advancements in healthcare on government budgets.
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