problem1. How do economists go about studying the economics of public sector? describe the four stages of analysis.
problem2. What are the major reasons describeing systematic failures of government?
problem3. What do economists mean when they say the economy is efficient? What essential conditions have to be satisfied if markets are to be efficient?
problem4. Why does Government intervene in market’s allocation of resources even if the economy is Pareto efficient?
problem5. What are the principal reasons why markets fail to produce efficient outcomes?
problem6. describe the characteristics of efficient tax system.
problem7. Use demand and supply model to analyse the impact of specific tax on producer, consumer and government.