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Answer all the given problems. Part A to be answered in around 500 words each and part B to be answered in around 300 words each.

Part A:

problem 1: Why does public intervention distinct from economy to economy? Which type of public intervention is not still considered a section of public economics and why?

problem 2: Critically describe the Vertical Federal Fiscal Imbalance and Horizontal Federal Fiscal Imbalance. Illustrate the noteworthy reasons for the emergence of Horizontal Federal Fiscal Imbalance.

Part B:

problem 3: Define the given:

a) Lindhal pricing.
b) Pareto efficient tax structure.
c) Prisoner’s Dilemma.

problem 4: What do you mean by the Social Welfare Function? Describe Samuelson-Bergson’s Social Welfare Indifference curves.

problem 5: Answer any two of the given in around 250 words each:

a) What do you understand by the concepts of Horizontal equity and Vertical equity?
b) Distinguish between internal and external public debt. What are the major sources of internal public debt?
c) Why is Fiscal Federalism proficient in the provision of public services?
d) Describe in brief the Tiebout Model.

problem 6: What are the main objectives of public debt management? prepare two principles of public debt management as defined by Philip E. Taylor.

problem 7: Differentiate between:

a) Inflation and Deflation.
b) Internal debt and External debt.
c) Theory of first best analysis and second best analysis.
d) Kaldor Compensation Criteria and Hicks Compensation Criteria.

Public Economics, Economics

  • Category:- Public Economics
  • Reference No.:- M92094

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