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

Part-II
Paper: Optional Supp. 22/ Annual 23 Max. Marks: 100

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

Q.1. What are the Externalities? What are possible solutions of the problem of Externalities? (20)
Q.2. What distinguishes public goods from privately provided goods? What do economists mean by
pure public goods and impure public goods? (20)

Q.3. Write a detailed note on Tax. What are the possible problems of low tax revenue in Pakistan?
Suggest the remedial measures to enhance tax-to-GDP? (20)

Q.4. Discuss in details Wagner’s law of increasing state spending. (20)

Q.5. What is traditional or standard view of the public debt? What is the Ricardian view? (20)

Q.6. What is meant by the incidence of tax? What determines who bears the burden of taxes?

How does it depend on elasticity of demand and supply? (20)

Q.7. What is Fiscal Deficit.? Why have fiscal deficit been so difficult to reduce? What are the
economic issues in the debate about how deficits should be removed?
(20)

Q.8. Explain the concepts with suitable examples & graphs

a) How do you differ Privatization & Nationalization?

b) Pareto Efficiency & Pareto Improvement?

c) Cost-Benefit Analysis (20)

MUST/M.A/P-II/A23/C