Grounds/Reasons for
Written Questions
Chapter
2.
'User Pays Principle' is evident in the price of every commodity in the
market place, except Credit Cards
'Supply and Demand' is arguably
the most fundamental concept in economics and the foundation of any free
enterprise market economy. The 'User Pays Principle' is
the omnipresent pricing mechanism to achieve the most equitable distribution of resources in
any such market economy. It
promotes responsibility and accountability and encourages 'Supply'. 'User Pays' occurs when consumers pay the 'full
cost' of
the goods or services that they consume - if
you want to acquire a good or service in the market place, you pay the market
price be it petrol, alcohol, groceries, paying the rent, engaging a plumber or
visiting the GP.
This deep-seated
fundamental of the 'User' paying the market price for a 'good' or 'service'
applies in all sectors of any open market
economy, even in the banking
sector
(eg. housing loan, personal loan, corporate loan, syndicated infrastructure
loan, overdraft, buying a bank cheque,
issuing a personal cheque, buying a money box etc.). But not Credit Cards.
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