Instructor's Manual IMLecture_Tips

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1、PublicFinance–LectureTipsLECTURETIPSChapter1–IntroductionDecisionsaboutpublicpolicycannotbemadeonthebasisofeconomicanalysisalone.Valuejudgmentsarealsorequired.ThepurposeofthebeginningpartofChapter1istomakethispoint,andtotrytomotivatethestudentstothinkhardaboutthevaluestheybringtobearonpubl

2、icpolicyproblems.Aninterestingexerciseistoaskeverystudentintheclasstostandup.Youcanthenmakeaseriesofstatements,askingstudentstoremainstandingaslongastheyagreeandtositdownwhentheydonotagree.Ifyoudothistheoppositeway,askingstudentstostartoutseatedandstandwhentheydisagreewithastatement,yourun

3、theriskofhavingnoonestandbecausetheyaren’tpayingattention.Asanexample,startwithastatementlike“Ithinkgovernmentshouldimplementandenforcelawsthatkeeptheroadssafe—likelawsagainstdrunkdriving,speeding,orrecklessdriving.”Veryfewstudentswillsitdownafterhearingthisstatement,indicatingthattheyagre

4、e.Then,moveontoanotherstatement,like“Ithinkgovernmentshouldbuildandmaintainroadsandhighways.”Youwillagainfindthatallormostofthestudentsarestillstanding.Afterafewstatementslikethese,makemorecontroversialpronouncements,suchas“Ithinkgovernmentshouldrequirethateverydriverhaveliabilityinsurance

5、”and“Ithinkgovernmentshouldrequirethateveryonewearaseatbelt.”Thisiswhereitgetsinteresting,andyoushouldseetheclassdivideaccordingtoattitudestowardgovernment.Youcanusuallygeteveryonetositdownbymakingastatementlike“Ithinkgovernmentshouldregulatewheneachpersoncanusetheroads,andtheroutetheytake

6、,inordertocontroltrafficpatterns.”Thisexerciseisfunbecauseitleadstodiscussionaboutgovernment’sroleintheeconomyandhowpeoplehavedifferentviewsonwhatgovernmentshoulddo.Youmaytryadifferentseriesofstatementsrelatedtoanothertopicifyouaren’tfascinatedbytraffic,butthestatementsshouldstartwithverym

7、ildgovernmentinterventionandendwithstronggovernmentcontrol.Thelectureonthesecondpartofthechaptershouldtrytoconveysomesenseofthescopeofgovernmentactivity.AboutathirdoftheGDPgoesthroughthepublicsector;andmoststudentsdonotrealizethatgovernmentisthatlarge.Thelectu