Description
MEC-106: Public Economics
Tutor Marked Assignment
Course Code: MEC-106
Assignment Code: MEC-106/AST/2024-25
Maximum Marks: 100
Note: Answer all the questions.
Section-A
Answer the following questions in about 700 words each. Each question carries 20
marks.
2X20=40
1. (i) “The overall welfare of the society essentially depends on the individual utility level”-
In the light of this statement, explain the various approaches of social welfare functions.
How does public intervention can meet the problems associated with negative
externalities?
(ii) Explain with example how collective decision making is distinct from individual
decisions making? On what basis an individual ranks various social states?
2. What do you mean by the term “market failure”? Give an account of the factors causing
market failure? What kind of state intervention is required to address the problems
associated with Monopoly Power?
Section B
Answer the following questions in about 400 words each. Each question carries
12marks.
5X12=60
3. State the features of local public goods and services. Do you think that ‘citizen- consumer
choice’ is ignored by the local governments? Give illustration.
4. Distinguish between public expenditure and private expenditure. To what extent public
expenditure should be incurred? Explain the theory of maximum social advantages
advanced by H. Dalton in this regard.
5. Write short note on following:
(i)
(ii)
(iii)
Global peace index
Nash equilibrium
Dual federalism
(iv)
Sink Costs
6. What is fiscal deficit? Explain the various ways through which fiscal deficit is financed.
7. What do you understand by the term ‘Macro Economic instabilities’? Which policy
instruments would you like to suggest for stablishing an economy suffering from
macroeconomics shocks?
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