problem1. Evaluate the following statement:
“The First Theorem of Welfare Economics describes that as long as producers and consumers act as perfect competitors and there are no other market failures, a Pareto efficient allocation of the resources emerges.
problem2. describe the conditions essential to accomplish Pareto Efficiency.
problem3. What is public good? describe how the free rider problem might be a problem in provision of a public good.
problem4. What do you mean by ‘‘market failure’’? Describe the various kinds of market failures that might take place in an economy.
problem5. How will you determine a good tax system?
problem6. Describe the different components in budgetary process of Mauritian Government. How will you justify present budget deficit?