Assignment 1
Each of the following questions is followed by requirements to attain full credit (5 points). In many of the questions, you will find a number of issues, or topics, that your answer(s) should address. For questions 3-5, you do not necessarily have to address all of the suggested topics. However, you are required to explore more than one issue, and to present articulate and thoughtful responses.
1. The United States’ government has been actively involved in providing flood insurance to people along rivers and coasts at risk from floods and hurricanes, along with efforts to reduce potential damage and discourage building in the highest risk areas. Why do you think the private sector failed to meet this need? Do you see any drawbacks to government intervention in this area? (1 pt.)
In order to receive full credit (1 pt.), please refer to Robert L. Bland’s (2013) discussion on market failures, and Holley H. Ulbrich’s (2011) section on “Government as manager of risk.” In addition, your answer should address both of the aforementioned questions, and be a minimum of 75 words.
2. Assume that studies have demonstrated that your state is lagging in economic development because too few students go on to post-secondary education, whether technical or academic. Review the list of eight tools for responding to market failure and consider whether and how four could be used to address this problem. (1 pt.)
In order to receive full credit (1 pt.), please refer to Robert L. Bland’s (2013) discussion on market failures, and Holley H. Ulbrich’s (2011) section on “What should government do?” Your discussion should explore four tools/strategies that government could use to address the given scenario. Also, your answer should also define market failure, and be a minimum of 75 words.
3. What might be the benefits/costs to existing residents in expanding the size of their municipality? To those being annexed? Based on your analysis, do you think it should be easy or difficult for cities to annex the surrounding areas? (1 pt.)
In order to receive full credit (1 pt.), please refer to Robert L. Bland’s (2013) discussion on “Social and demographic change” at the local level, and Holley H. Ulbrich’s (2011) section on “The state/local relationship.” Your answer should address issues of economies/diseconomies of scale, home rule powers, local taxation, and, quite possibly, the Tiebout hypothesis. Finally, your answer should be a minimum of 100 words.
4. Which of the following government services seems most suited to national or central rather than local provision? Why? (1.25 pts.)
• environmental protection
• public welfare (aid to the poor)
• lighthouses
• inoculations for preschool children
In order to receive full credit (1.25 pts.), please refer to Holley H. Ulbrich’s (2011) “Chapter 3: Structures of government.” Your answer should address all of the listed services (a-d), as well as issues of centralization/decentralization, positive/negative externalities (or spillovers), and economies/diseconomies of scale. Finally, your answer should be a minimum of 150 words.
5. While local governments are supposedly “closest to the people” and therefore more responsive than higher level governments, in the past 25 years many state governments in the United States have imposed increasing restrictions on the ability of local governments to raise taxes and/or borrow money. Why (or why not) would it be appropriate for state governments to put such restrictions on local governments? (.75 pts)
In order to receive full credit (.75 pts.), please refer to Robert L. Bland’s (2013) discussion on “Social and demographic change” at the local level, and Holley H. Ulbrich’s (2011) section on “The state/local relationship.” Your answer should address centralization/decentralization, home rule powers, fiscal autonomy, and, quite possibly, the Tiebout hypothesis. Finally, your answer should be a minimum of 75 words.