EC 3809 / EC 3805 – PUBLIC ECONOMICS – I

Date & Time: 24/04/2007 / 9:00 – 12:00 Dept. No. Max. : 100 Marks

Part – A

Answer any FIVE questions in about 75 words each. (5 x 4 = 20 marks)

Explain the theory of social choice.
What are the reasons for Market failure?
Comment on the effect of four fiscal measures used to perform distribution function.
What is social discount rate? What are its uses and limitations?
Compare internal rate of return with demand price of capital asset.
What is debt management? Why is it necessary?
Comment on the dis-investment effort taken by government of India during the year 2006-07.

Answer any FOUR questions in about 250 words each. (4 x 10 = 40 marks)

What is the job of the government under allocation branch?
Why do we need a separate theory for the provision of public and private goods?
“Wagner’s Law of public expenditure is by and large true” – Explain.
Explain James M. Buchanan’s model of public expenditure in a small number case.
Assess the burden arising out of external debt.
Assess the contribution of public sector units to private sector units in India.
Critically evaluate the pricing policy of public sector produced goods and services in India.

Answer any TWO questions in about 300 words each. (2 x 20 = 40 marks)

Assess the over all contribution of public sector units to major Macroeconomic variables in India.
Measure the size and growth of public debt in India since 1991. What are consequences of rising public debt? How should they be handled?
Stat and explain the Peacock and Wiseman model of public expenditure.
Critically evaluate Bowen and Lindahl model of public expenditure.