Public Finances

1. Using indifference curves, demonstrate the welfare effects of in-kind versus monetary aid transfers. Which one would you use?

2. Mention the theoretical foundations that economic theory gives us for the State to provide social security?

3. The income that the federal government received from the bidding for the concession of the national open TV network, under what concept should it be classified?

4. Consider an economy that produces coal and natural gas, and whose sale prices are determined by the market, that is, there is no price regulation. The state is thinking of introducing a consumption tax on each good; if in each market i when a tax ti is introduced an excess tax equal to P_i qt²_i is generated, and the State wants the amount collected to be equal to R, find the tax rates that minimize the excess burden in this economy .

5. Determine what is the central element behind the Ricardian Theory of Public Debt.