Th1.4: Gov Failure: Excess Administration Costs

Question 1

What happens to a lot of the money the government allocates and what does this mean?

Answer 1

a lot is actually used up on basic administration costs. once these are taken into account, social costs may be higher than social benefits

Question 2

What is an example of this in the UK?

Answer 2

a lot of money is given to the NHS, yet a lot is put into organisational administration rather than actual medical care

Question 3

What has excessive administration on the Apprenticeship Levy meant?
(apprenticeship levy increases quantity and quality of apprenticeships)

Answer 3

little money is spent by firms