|Course Code :||MEC-106|
|Course Title :||Public Economics|
|Program :||MA Economics / MEC|
|Max Marks :||100|
|Session :||July 2020 and January 2021 (2020-21)|
|Last Date of Submission :||15th March, 2021 (for July 2020 session)
15th September, 2021 (for January 2021 session)
|Solution Type :||Softcopy (PDF File)|
TUTOR MARKED ASSIGNMENT
MEC-106: PUBLIC ECONOMICS
Course Code: MEC-106
Assignment Code: MEC-006/AST/2020-21
Total Marks: 100
Note: Answer all the questions. While questions in Section A carry 20 marks each (to be answered in about 500 words each) those in Section B carry 12 marks each (to be answered in about 300 words each). In the case of numerical questions word limits do not apply.
1) Discuss the welfare concepts, inbred in the different forms of social welfare functions, which form the foundation of policies in public economics.
2) Elucidate the two theoretical models attributed to Lindahl and Samuelson in the context of public goods.
3) Outline how internalisation of negative externalities could be a solution to externalities through the instruments of taxation and property rights.
4) State Arrow’s impossibility theorem with conditions. Also, illustrate the element of impossibility in Arrow’s theorem.
5) Highlight the argument behind the ‘revenue maximisation’ approach to public expenditure.
6) Establish how under conditions of ‘imperfect competition’ government enhances overall social welfare.
7) Delineate the ‘alternative strategies’ available to ensure the required money supply in an economy.
Keywords: MEC-106, MEC106, MEC 106