What are the consequences of government deficits, Public Economics

Assignment Help:

Question 1:

Briefly (three or four paragraphs) give reasons for your answer.

(a) In studying the public sector, economists should use either positive or normative economics but not both.

(b) The Government intervenes in the market's allocation of resources only when it is not Pareto efficient.

(c) The Lorenz curve measures the degree of inequality in an economy.

(d) In a competitive market, if the supply is completely inelastic or if the demand curve is completely elastic, the tax is borne by consumers.

Question 2:

(i) What do economists mean when they say the economy is efficient? What basic conditions have to be satisfied if markets are to be efficient?

(ii) What are the conditions under which markets are not Pareto efficient?

Question 3:

(i) What is a compensated demand curve and how is it used to measure inefficiency?
(ii) What are the three approaches for making social choices when there is not a Pareto improvement?

Question 4:

"The Government alone can deal with the problems posed by externalities". Discuss.

Question 5:

(i) Describe the characteristics of an efficient tax system.

(ii) Why is it difficult to set up an efficient tax system in developing countries?

Question 6:

What are the consequences of government deficits? How deficits affect future generations?


Related Discussions:- What are the consequences of government deficits

Prepare a news release announcing the launch of network, The news release i...

The news release is the ‘granddaddy' of public relations writing vehicles. (a) As a PR student, show the main points you would consider when attempting to write an effective ne

Advantages of mbis, Normal 0 false false false EN-IN ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Quantity of pollution abatement, Normal 0 false false false...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Case for improving upon the market system -pigovian analysis, Case for Impr...

Case for Improving upon the Market System   Unlike the "optimistic followers"  of the "classical school" who believed  that markets  would  "natural!yn  or "automatically" prod

Comparison of gdp, Normal 0 false false false EN-IN X...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Financial deregulation - regulations and competition policy, Consider a cas...

Consider a case, if an insurance company merges with a bank. We know that insurance company bears risk for insurers. Suppose, after merger, bank gets in some trouble for reasons ot

Tell me about free publicity, Free Publicity is only the periodical subscri...

Free Publicity is only the periodical subscription. This is only in newsletter in which one spills the guts about publicity. It is your chance to tap into one's brain and dig out a

#title.public debt.., what is public debt. ? give complate information on p...

what is public debt. ? give complate information on public debt. ?

Discuss basic features of international policy coordination, Discuss the ba...

Discuss the basic features of international policy coordination. There may be two sources of interdependence between national economic policies, club goods and horizontal spill

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd