Mec-006 Eng

No.
of Printed Pages : 4 1MEC-006
MASTER OF ARTS (ECONOMICS)

00
N- Term-End Examination
C)
C.) June, 2017
MEC-006 : PUBLIC ECONOMICS
Time : 3 hours Maximum Marks : 100

Note : Answer questions from each section as directed.
SECTION - I
Answer any two questions from this section in
about 500 words each. 2x20=40
1. What is fiscal federalism and how the
governments are organised in a federal country ?
Why is fiscal federation considered efficient in
provision of public services ?
2. Attempt to define Public Economics. Delineate

the scope of Public Economics.
3. What has been the importance of direct taxes in

the central government revenue in India ? Do
you think reforms in direct taxes have yielded
desired results ?
4. Discuss the theories of public debt with respect to

implications for future generation and also bring
out major distinctions between them.
MEC-006 1 P.T.O.
SECTION - II
Answer any five questions from this section in
about 300 words each. 5x12=60
5. What are the basic instruments of fiscal policy ?
6. Describe Prisoner's Dilemma and explain its

applicability in the real world.
7. What do you mean by market failure ? Explain

how government intervention can correct market
failure ?
8. Explain briefly the multiple stream approach to

agenda setting.
9. Why Ramsey rule may be called inegalitarian ?

How can it be mitigated in presence of leisure ?
10. What is the main objective of capital levy ? What

are the grounds for objections to such a levy ?
11. What do you mean by regulation ? Suggest a few

regulatory measures which government
undertakes to protect consumers.
12. What is meant by majority voting ? What are the

basic weaknesses of majority voting and what are
the ways to improve the majority voting
outcome ?
MEC-006 2
No. of Printed Pages : 4 I MEC-006 I
isr) MASTER OF ARTS (ECONOMICS)

Term- End Examination
June, 2018

Note : Attempt questions from each section as instructed.
SECTION - A
Attempt any two questions from this section.
(Answer in about 500 words each) 2x20=40
Sketch out the domain of public economics.
Explain how public intervention tries to influence
allocation and distribution of societal resources.
2. Compare and contrast the theory of justice given

by Rawls and Nozick. Explain how Nozick differs
from Rawls.
3. What do you understand by "The problem of

coordination" in policy process ? Explain reasons
behind "Coordination failure".
4. What are the canons of taxation ? How does the

imposition of a tax distort the allocation of
resources ?
MEC-006 1 P.T.O.
SECTION - B
Attempt any five questions from this section.
5. What is fiscal federalism and how are the

governments organised in a federal country ?
6. Critically explain the Tiebout Model.
7. What do you understand by externalities ?

Distinguish between positive and negative
externalities.
8. What are the basic elements of fiscal policy in

federal countries ?
9. Ramsey rule can be inegalitarian in case of

personal income taxes also. Explain with
examples.
10. What is the main hypothesis is Downs Economic

Theory of Democracy ?
11. What do you mean by free rider problem ?
12. Differentiate between any two of the following :

(a) Pareto efficient tax structure and an optimal
tax system.
(b) Internal public debt and external public
debt.
(c) Public good and private good.
MEC-006
No. of Printed Pages : 8 I MEC 006
-
MASTER OF ARTS (Economics)
Term-End Examination
December, 2011
00
r-- MEC-006 : PUBLIC ECONOMICS
00
r-1
O
Note : Attempt questions from each section as per direction

therein.
SECTION - A
Note : Attempt any two questions from this section

in about 500 words each. 2x20=40
1. Distinguish between Rawls Theory of Justice with

Nozick's Theory of Justice.
2. What do you understand by horizontal and

vertical equity ? How are the concepts important
in taxation field ?
3. What do you mean by public goods ? How are

local public goods different from national and
international public goods ?

MEC-006 1 P.T.O.
4. Explain :
(a) Importance of single - peakedness in
majority voting
(b) Difference between plurality voting and
point voting.
(c) Logrolling
(d) Voting by feet
MEC-006 2

SECTION - 13

Note : Attempt any five questions from this section
in about 300 words each : 5x12=60
5. Discuss :
(a) Down's Theory of Democracy or
(b) Economic Analysis of Bureaucracy.
6. What do you mean by market failure How can

market failure be repaired ?
7. Contrast the modern view of public debt with

classical view.
8. What is the essence of a fiscal policy ? How does

it differ in a federal polity ?
9. (a) Discuss Ramsey model of optimal taxation.

(b) Discuss Linear model of income tax.
.10. Privatisation decreases the extent of political

intervention. Explain.
11. What is fiscal federalism ? How are the

governments organised in a federal country ?
12. Write notes on any two of the following :

(a) Social choice
(b) Public choice
(c) Tax evasion
(d) Dead weight loss
MEC-006 3 P.T.O.
No. of Printed Pages : 4 MEC-006]
December, 2014

Note : Attempt questions from each section as instructed.
SECTION - A
1. Discuss in detail the Arrow Impossibility Theorem

and observations made by A.K. Sen.
2. What do you mean by public choice ? List out

various voting models that attempt to translate
individual preferences into public choice. Explain
the condition under which median voter wins in
the majority voting rule.
3. Explain briefly the determination of monopoly

price. Explain, why the monopoly equilibrium
for a public utility is unstable. In this context
explain average cost pricing.
4. Discuss the present Indian tax structure in

comparison with pre-reform tax structure.
MEC-006 1 P.T.O.
SECTION - B
Attempt any five questions from this section
(Answer in about 300 words each) : 5x12=60
5. Discuss Lindahl Pricing for efficient allocation of

public goods.
6. Discuss the context in which industries and

individuals reveal their preferences by 'voting
with their feet'.
7. Discuss the principles of fiscal devolution in a

federal polity.
8. Discuss the basic features of the Open

Coordination Method.
9. What are the main differences between public and

private debt ? What are the limits to raising public
debt by a government ?
10. Discuss the issues of tax competition and tax

exportation in a decentralized fiscal system.
11. Explain and differentiate between point and rank

voting.
12. "Privatization may even lead to market failure".

Explain.
MEC-006 2
0 I. 08E1
No. of Printed Pages : 4 MEC-006
December, 2015

Note : Attempt questions from each section as per
instructions given.
SECTION A
Answer any two questions from this section in about
500 words each. 2x20=40
1. Distinguish between a local public good and a
national public good. In this context also discuss
the advantages and disadvantages of
decentralisation. 8+12
2. "Social welfare function is an attempt to
aggregate individual's welfare in an economy into
social welfare." Discuss. Also explain
Samuelson-Bergson's social welfare function. 10+10
3. Illustrate the international policy linkages and
prospects of their coordination with the help of a
simple two country Mundell-Fleming model. 20
4. State Ramsey Rule for optimal commodity
taxation. Why may this rule be called
inegalitarian ? How can this problem be
mitigated in the presence of leisure ? 6+6+8
MEC-006 1 P.T.O.
SECTION B
Attempt any five questions from this section in about

5. Discuss the micro-level and macro-level impacts of

public debt in an economy.
6. Discuss in brief the different methods of
repayment of public debt.
7. What are the different types of grants and what
purpose do they serve ? How can transfer of
grants correct vertical imbalance in a federal
country ?
8. How is the optimal size of local jurisdiction
determined ? What are its limitations ?
9. What do you mean by average cost pricing ? Also
explain why the monopoly equilibrium for a
public utility is unstable.
10. What is ordinalistic approach ? How do the New
Welfare Economists seek to overcome the
limitations of this approach ?
11. In context of Allingham-Sandmo model, suggest
policy measures for reducing tax evasion in
India.
12. Write short notes on any two of the following :
(a) Inflation-Linked Bonds
(b) Role of Government in a Mixed Economy
(c) Fiscal Imbalances in India
MEC-006 2
June, 2014
02932
Note : Answer questions from each section as directed.
SECTION I
1. What do you understand by Public Good ? What

is its implication on market failure ? Distinguish
between public goods and merit goods with the
help of examples.
2. Explain why welfare losses from centralized

provision increase with heterogeneity in tastes
and preferences across localities. Explain why
centralized provision is a better policy in the
presence of economies of scale.
3. What do you understand by 'public intervention' ?

When and how should the government intervene
in a mixed economy in a globalisation era ?
. What are the internal and external sources of

public debt ? What ways should be adopted for
redemption of each of them ?
MEC-006 1 P.T.O.
SECTION II
Answer any five questions from this section in about
5. Explain Bergson-Samuelson's Social Welfare

Function and differentiate with Rawls' or
Bentham's Social Welfare Function.
6. What do you mean by 'special interest groups' ?

Explain briefly how they influence the policy
process.
7. (a) Describe the concept of horizontal equity in
your own words.
(b) Explain Nozick's theory of justice.
8. How does the imposition of a direct tax distort

the allocation of time between labour and
leisure ?
9. What do you mean by welfare gains ? Discuss
the welfare gains of decentralisation in terms of
Tiebout model.
10. What are various methods adopted for pricing a
utility service ? When does a public utility resort
to 'block pricing' ?
11. What is 'free-rider problem' ? How does it appear
in the context of decentralisation ?
12. Write about the relationship of price level with

debt management.
MEC-006 2

June, 2015
04266
Note : Attempt questions from each section as per
instructions given.
SECTION A
500 words each. 2 x 20=40
1. "A public good does not necessarily refer to a good
that is provided by the government." Discuss.
Also state the different types of externalities.
Which type of externalities result in economic
inefficiency ? Why ?
2. State Arrow's Impossibility Theorem. Also
examine the proof of the theorem, as given by
A.K. Sen.
3. Explain the "problem of coordination" in policy
process and reasons behind "coordination
failure". Suggest policy interventions to cope with
the problem of coordination failure.
4. "Equity or fairness should be the essential
feature of any tax system." In light of this
statement, explain the different approaches to
tax equity.
MEC-006 1 P.T.O.
SECTION B
Answer any five questions from this section in about

5. Why did the classical economists oppose public

debt ? State Ricardo — Pigou thesis regarding the
transfer of burden of public debt to future
generations.
6. Explain the meaning of debt management. Also
state the principles of debt management as
propounded by Philip E. Taylor.
7. What is fiscal federalism ? Why is fiscal
federalism efficient in provision of public
services ?
. Discuss in brief the principle of benefit incidence
in division of functional responsibilities.
▪ What do you mean by 'natural monopoly' ?
Discuss the utility pricing rules in natural
monopoly.
10. What are merit goods ? Also explain why certain
ventures are not undertaken by the private
sector.
11. Critically examine in brief the "Stages model" of
policy formulation.
(a) Fiscal Crowding Out
(b) Fiscal Competition
(c) Quantitative Measure of Public Intervention
MEC-006 2
No. of Printed Pages : 4 I MEC 006 I
-

June, 2016

Note : Attempt questions from each section as directed.
SECTION A -

Answer in about 500 words each.
2x20=40
What is 'Market Failure' ? State the forms of
governmental intervention to solve the problems
created by market failure.
2. What do you mean by burden of public debt ?

Explain Ricardo-Pigou Thesis regarding transfer
of burden of public debt to future generations.
3. Distinguish between private and public goods.

Explain Lindahl pricing as applied to public
goods.
4. Explain the Allingham Sandono Model of tax

evasion. Distinguish between tax avoidance and
tax evasion giving suitable examples.
MEC-006 1 P.T.O.
SECTION - B

Answer in about 300 words each. 5x12=60
5. Write about economic advantages and
disadvantages of decentralisation.
6. Discuss the various stages involved in 'policy

process'.
7. Give Ree's arguments for and against

privatisation.
8. What is 'Fiscal Equity' ? Distinguish between

Horizontal Equity and Vertical Equity.

(a) Joint Venture
(b) Lafer Curve
(c) Strategic Voting
(d) Block Pricing
10. Explain Horizontal and Vertical imbalances. How

does transfer of grants correct these imbalances
in a federal economy ?
11. What is Median Voter Theorem ? Explain through

a model, how does the median voter prevail.
12. Bring out the main contours of difference between

fiscal federalism and political federalism.
MEC-006 2
No. of Printed Pages : 5 I MEC-006
June, 2011
Note : Attempt questions from each section as per direction

therein.
SECTION-A
2x20=40
Answer them in about 500 words each.
1. Explain different compensation criteria for
judging a public policy action.
2. Discuss the conditions under which a government

needs to intervene in the market.
3. What do you understand by

(a) Natural monopoly
(b) Voting by feet
4. Write notes on :
(a) Public goods vs. merit goods
(b) Lindahl Pricing
MEC-006 1 P.T.O.
SECTION-B
Note : Attempt any five questions from this Section
in about 300 words each : 5x12=60
5. (a) Define public debt and distinguish from
external debt.
(b) Is public debt a burden of the nation ?
Substantiate your answer.
6. Explain (a) Laffer curve and (b) Optimal income

taxation.
7. Discuss the instruments and institutions of

government intervention.
8. Distinguish between political federalism and fiscal

federalism. What are the gains from fiscal
federalism ?
9. How is public policy formulated ? How is

coordination problem tackled in a federal polity ?
10. What are the different types of grants and what

purpose they serve ?
11. What is the difference between a Pareto efficient

tax structure and an optimal tax system ?
12. Write notes on any two of the following :

(a) Phenomenon of rent seeking
(b) Tiebout hypothesis
(c) Financial deregulation
(d) Special interest groups and policy decision.
MEC-006 2
■•■ •••••1
December, 2018

Time : 3 hours Maxiinum Marks : 100
Note : Attempt questions froin each section as instructed.
SECTION - A
(Answer in about 500 words each) : 2x20=40
1. Explain briefly the determination of monopoly
price. Explain, why the monopoly equilibrium
for a public utility is unstable. In this context,
explain average cost-pricing.
2. Delineate the area of public choice theory. Discuss

the relationship between public choice and social
choice.
3. What are the main problems in international

policy coordination ? Using Fleming-Mendel two-
country model, explain the basic mechanisms of
policy coordination and show how they
streamline various forces to reach an acceptable
policy option ?
4. What do we mean by an optimal tax system ?

Identify the problems we encounter in 'optimal
conunodity taxation'.
MEC-006 1 P.T.O.
SECTION - B
(Answer in about 300 words eich) : 5x12=60
5. Discuss Lindhal pricing for efficient allocation of

public good.
6. What are the main differences between public and

private debt ? What are the limits to raising public
debt by a government ?
7. What do you mean by market failure and

government intervention ?
8. Write about 'Vertical Federal Fiscal Imbalance'.
9. Why are certain economic ventures not

undertaken by the private sector ?
10. Is there any scope for inter-governmental

competition in the Tiebout model ? Explain.
11. What is a merit good and what is the role of

government in its provisioning ?
12. Describe Prisoner's Dilemma and explain its

applicability in the real world.
MEC-006 2

c\1 Term-End Examination
00
O December, 2012
C
SECTION - A

1. Define Public Economics. Which kind of public

intervention is not still considered a part of public
economics and why ?
2. Discuss how public choice is derived through

different voting models.
3. What is public debt and what are its main

sources ? Discuss impacts of public debt on
consumption and production.
4. How does transfer of grants correct vertical

imbalances as well as horizontal imbalances in a
federal country and achieve fiscal equalisation ?
MEC-006 1 P.T.O.
SECTION - B
5. Many factors in addition to government policies

influence a person's choice of a location. Explain
Tiebout hypothesis.
6. Distinguish between merit and public goods with

the help of examples.
7. Explain Bowen and Black's models for the

identification of Median Voter Preference.
8. Analyse the difference between horizontal and
vertical equity. In which case taxation based on
consumption expenditure results in horizontal
equity ?
9. What are the main problems in international

policy coordination ? How they are solved ?
(a) Minimum winning coalition
(b) Foreign Direct Investment
(c) Theory of second best analysis
(d) Dead weight loss in taxation.
11. Explain the objectives and methods of public debt
management.
12. Do you think that privatization can always
decentralise economic power ? Critically discuss.
MEC-006 2

00
t ∎
C7o December, 2013

SECTION-A
1. Which kind of public intervention is still not
considered a part of public Economics and
Why ? Why would public intervention differ from
economy to economy ?
2. Critically analyse the impact of public debt. on;

(a) Production
(b) Private sector
(c) Resource allocation and national income
(d) Working of the money market.
3. What do you understand by externalities ? What

are the various types of externalities ? Discuss
possible consequences of negative externalities and
major solutions thereof.
4. Critically evaluate the Rawl's theory of justice.

Compare it with Nozick's is theory.
MEC-006 1 P.T.O.
SECTION-B
5. Distinguish between merit and public goods with
the help of examples.
6. Compare and contrast Samuelson's Social

Welfare Function with Rawls and Bentham's
formulations.
7. What is public debt ? What are the main

differences between public and private debts ?
8. What is crowding out effect ? Explain in detail

giving the types of crowding out effects.
9. How does the imposition of a tax distort the

allocation of resources ?

(a) Foreign Direct Investment
(b) Fiscal Federalism.
(c) Prisoner's Dilemma.
11. Privatisation decreases the extent of political

intervention. Explain.
12. Do you think that the theory of optimal tax system

is relevant from policy perspective ? Argue for
your answer.
MEC-006 2

December, 2016

SECTION - A
(Answer in about 500 words each). 2x20=40
1. 'Government should intervene in the working of
market mechanism is today a foregone conclusion
but the manner and its extent continues to be an
issue'. Argue.
2. What is the rationale of public debt ? Discuss the

views of classical and modern economists on
public debt.
3. Explain Positive and Negative externalities. How

can government help to correct the problems
created by externalities ?
4. What is the economic rationale of levying taxes ?

Distinguish between 'Incidence of Taxation and
'Impact of Taxation.
MEC-006 1 P.T.O.
SECTION - B

(Answer in about 300 words each). 5x12=60
5. Discuss the effects of taxation on production and
distribution of resources.
6. Explain the relationship between public choice

and social choice.
7. What are the weaknesses of public sector

enterprises in India.
8. 'Many factors in addition to government policies

influence an enterprise's choice of location'.
Explain.
9. What is the Median voter theorem ? Explain

through a model, how does the opinion of median
voter prevails.

(a) Public utilities
(b) Voting by feet
(c) Debt conversion
(d) Lump sum tax
11. What do you understand by policy coordination ?

Discuss the problems involved in international
policy coordination.
12. Write a note on Arrow's Impossibility theorem.
MEC-006 2

00 Term-End Examination
June, 2012

SECTION - A
1. Define Public Economics. Critically examine why

public economics is often called applied welfare
economics.
2. What do you understand by externalities ? What

are the various types of externalities ? Discuss some
possible consequences of negative externalities and
some solutions there of.
3. Explain Rawls' theory of justice. Compare it with

Nozick's theory.
4. What do you understand by policy process and

its various stages ? Explain "the problem of
coordination in policy process.
MEC-006 1 P.T.O.
SECTION - B
5. Discuss the relationship between public choice
and social choice.
6. Explain any two of the following :

(a) Majority voting model
(b) Concept and practice of logrolling
(c ) Progressive rate of taxation.
7. Bring out main contours of difference between

fiscal federalism and political federalism.
8. What has been importance of direct taxes in the

Central Government revenue in India ? Do you
think reforms in direct taxes have yielded
results ? Argue in favour of your answer.
9. Critically analyse normative theories of state.
10. Define social welfare function. Compare

Bentham's, Samuelson's and Rawls' functions.
11. Explain the methods of debt repayment.
12. What is the idea behind the pure theory of public

expenditure ? Discuss.
MEC-006 2
0)
0) June, 2013
vzr
SECTION-A

1. Attempt to define public economics. Which kind

of public intervention is not still considered a part
of public economics and why ?
2. What do you understand by excess burden or

efficiency loss ? Using demand curves with
different price elasticities show the excess burden
would be different.
3. Explain the stages and various coordination

mechanism involved in policy processes. Discuss
various factors that influence the agenda setting
in policy processes.
MEC-006 1 P.T.O.
4. Critically explain the vertical Federal Fiscal
Imbalance and Horizontal Federal Fiscal
Imbalance. Explain the important reasons for the
emergence of Horizontal Federal Fiscal Imbalance.
MEC-006 2
SECTION-B
5. Explain any two of the following :
(a) Lindhal pricing
(b) Pareto efficient tax structure
(c) Prisoner's Dilema
6. What are the objectives and meaning of public

debt management ? Write two principles of public
debt management as stated by Philip E. Taylor.
7. Differentiate between any three of the following :

(a) Inflation and deflation
(b) Kaldor's Compensation criteria and Hicks'
compensation criteria
(c) Theory of first best analysis and theory of
second best analysis
(d) Sales tax and value added tax
8. Define social welfare function. Compare

Bentham's, Samuelson's and Rawls' functions.
9. Do you think that privatisation can always

decentralise economic power ? Critically
examine.
MEC-006 3 P.T.O.
10. Explain how weber has defined a rational
bureaucrat.
11. Do you think that public policy in a democratic

country is based on public choice ? Explain.
12. Why did classical economists oppose and modern

economists favour public debt ?
MEC-006 4

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No.

of Printed Pages : 4 1MEC-006

MASTER OF ARTS (ECONOMICS)

MEC-006 : PUBLIC ECONOMICS

Time : 3 hours Maximum Marks : 100

2. Attempt to define Public Economics. Delineate

3. What has been the importance of direct taxes in

4. Discuss the theories of public debt with respect to

6. Describe Prisoner's Dilemma and explain its

7. What do you mean by market failure ? Explain

8. Explain briefly the multiple stream approach to

9. Why Ramsey rule may be called inegalitarian ?

10. What is the main objective of capital levy ? What

11. What do you mean by regulation ? Suggest a few

12. What is meant by majority voting ? What are the

isr) MASTER OF ARTS (ECONOMICS)

MEC-006 : PUBLIC ECONOMICS

Note : Attempt questions from each section as instructed.

2. Compare and contrast the theory of justice given

3. What do you understand by "The problem of

4. What are the canons of taxation ? How does the

5. What is fiscal federalism and how are the

6. Critically explain the Tiebout Model.

7. What do you understand by externalities ?

8. What are the basic elements of fiscal policy in

9. Ramsey rule can be inegalitarian in case of

10. What is the main hypothesis is Downs Economic

11. What do you mean by free rider problem ?

12. Differentiate between any two of the following :

MASTER OF ARTS (Economics)

Note : Attempt questions from each section as per direction

Note : Attempt any two questions from this section

1. Distinguish between Rawls Theory of Justice with

2. What do you understand by horizontal and

3. What do you mean by public goods ? How are

6. What do you mean by market failure How can

7. Contrast the modern view of public debt with

8. What is the essence of a fiscal policy ? How does

9. (a) Discuss Ramsey model of optimal taxation.

.10. Privatisation decreases the extent of political

11. What is fiscal federalism ? How are the

12. Write notes on any two of the following :

MASTER OF ARTS (Economics)

MEC-006 : PUBLIC ECONOMICS

Note : Attempt questions from each section as instructed.

1. Discuss in detail the Arrow Impossibility Theorem

2. What do you mean by public choice ? List out

3. Explain briefly the determination of monopoly

4. Discuss the present Indian tax structure in

5. Discuss Lindahl Pricing for efficient allocation of

6. Discuss the context in which industries and

7. Discuss the principles of fiscal devolution in a

8. Discuss the basic features of the Open

9. What are the main differences between public and

10. Discuss the issues of tax competition and tax

11. Explain and differentiate between point and rank

12. "Privatization may even lead to market failure".