Econ and finance 340

4. Why does redistribution cause efficiency losses? Why might society choose to redis- tribute resources from one group to another when doing so reduces the overall size of the economic pie?2. How has the composition of federal and state and local government spending changed over the past 40 years? What social and economic factors might have con- tributed to this change in how governments spend their funds?1. Many states have language in their constitutions that requires the state to provide for an "adequate" level of education spending. What is the economic rationale for such a requirement?3. Some goods and services are provided directly by the government, while others are funded publicly but provided privately. What is the difference between these two mechanisms of public financing? Why do you think the same government would use one approach sometimes and the other approach at other times?10. In the United States, the federal government pays for a considerably larger share of social welfare spending (that is, spending on social insurance programs to help low- income, disabled, or elderly people) than it does for K-12 education spending. Simi- larly, state and local governments provide a larger share of education spending and a smaller share of welfare spending. Is this a coincidence, or can you think of a reason for why this might be so?11. The urban African-American community is decidedly split on the subject of school vouchers, with their leaders comprising some of the most vocal proponents and op- ponents of increased school competition. Why do you think this split exists