MIRPUR UNIVERSITY OF SCIENCE AND TECHNOLOGY (MUST), MIRPUR

Subject: Public Sector Economics M.Sc. Economics Time: 03 Hours.

Part-II

Paper: Supply 2023/Annual24 Max. Marks:100

NOTE: Attempt any five (05) questions. All questions carry equal marks. (20×5=100)

Q.1. Differentiate between public goods and private goods. Provide examples of pure public goods and semi-
public goods.
Q.2. Write a detailed note on the different types of taxes in Pakistan. What are the challenges of low tax
revenue in Pakistan and suggest measures to enhance the tax-to-GDP ratio?

Q.3. What is Pareto Efficiency? Explain with an example how Pareto Improvement can be achieved in a public
policy context.

Q.4. What are the Externalities? What are possible solutions of the problem of Externalities?
Q.5. Discuss the principles of tax shifting and incidence. How do elasticity of demand and supply affect who
bears the burden of a tax??

Q.6. Define fiscal deficit. Why has reducing the fiscal deficit been challenging in Pakistan? Discuss the

economic issues involved in deficit financing.

Q.7. Explain the Ricardian view of public debt. Compare it with the traditional view and discuss the internal
and external debt problems faced by Pakistan.

Q.8. Analyze the determinants of tax shifting under partial equilibrium conditions. How does tax incidence

analysis help in understanding the impacts of tax shifting on prices?

MUST/M.A./P-II/A24/C