Summary
Summary Theory of Maximum Social Advantage-Slides
- Course
- Institution
Theory of Maximum Social Advantage-Slides
[Show more]
Seller
Follow
ProfDavi
Content preview
The Principle of Maximum Social AdvantageIntroduced: British economist Hugh Dalton.
The Principle states:
The state should collect revenue and spend the money
so as to maximize the welfare of the people. When the
state imposes taxes, some disutility is created. On the
other hand, when the state spends some money, there is
gain in utility. The state should so adjust revenue and
expenditure that surplus of utility is maximised and
disutility is minimised.
1
Department of Economics and Foundation Course, R.A.P.C.C.E.
, Marginal Social Sacrifice (MSS)
Definition:
The amount of social sacrifice undergone by public due
to the imposition of an additional unit of tax. Every unit
of tax imposed by the government taxes result in loss of
utility.
Dalton: The additional burden (marginal sacrifice)
resulting from additional units of taxation goes on
increasing. Every additional unit of taxation creates
greater amount of sacrifice on the society.
2
Department of Economics and Foundation Course, R.A.P.C.C.E
, Marginal Social Sacrifice (MSS)
3
Department of Economics and Foundation Course, R.A.P.C.C.E
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ProfDavi. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now