MEC-6 EM 2023-24 SOLVED ASSIGNMENT

Description

MEC-006: Public Economics
Tutor Marked Assignment (TMA)
(For the Students who have taken admission up to January 2020 Academic Cycle)
Course Code: MEC-006
Asst. Code: MEC-006/TMA/2023-24
Total Marks: 100
Note: Answer all the questions.
SECTION A
Answer the following questions in about 700 words each. Each question carries 20 marks.
1. a) Define externalities. Briefly discuss the types of externalities.
b) How is inefficiency related to both the negative externalities as well as positive externalities?
Explain with the help of appropriate diagrams. (8 +12=20)
2. a) What do you understand by partial welfare improvements? Discuss.
b) Explain the Ramsey tax model in detail. (8+12=20)

SECTION B
Answer the following questions in about 400 words each. Each question carries 12 marks.
3. How is voting with feet relevant in context of provision of local public goods? Discuss.
4. Bring out the difference between Buchanan’s Contractual Theory and the Kolm’s theory of ‘liberal
social contract.
5. Voting models attempt to translate individual preferences in terms of Public Choice. Explain how
the majority voting works in this context.
6. Discuss the decision mechanism in terms of of policy agenda setting, information agenda setting
and policy convergence.
7. Analyse the impact of internal public debt on the economy.
8. Write short notes on the following: (3X4 = 12)
(i) Arrow’s Impossibility Theorem
(ii) Laffer Curve
(iii) Problem of free riding