MEC-006 Public Economics in English Solved Assignment 2018-2019

MEC-006 Solved Assignment 2018-19

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MEC-006: PUBLIC ECONOMICS
Assignment (TMA)
Course Code: MEC-006
Assignment Code: MEC-006/AST/2018-19
Maximum Marks: 100

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Note: Answer all the questions. While questions in Section A carry 20 marks each (to be
answered in about 500 words each) those in Section B carry 12 marks each (to be answered
in about 300 words each). In the case of numerical questions word limits do not apply.
SECTION-A
1. Discuss the basic idea behind the Pure Theory of Public Expenditure. Also explain the
theoretical rationale behind Lindahl Pricing.
2. Stating the ideal conditions for meeting the socially optimum criteria for utility pricing,
critically discuss the utility pricing rules for best solutions.
SECTION-B
3. Explain the concept of ‘plurality voting’.
4. What is the importance of ‘trans border policy coordination’?
5. Illustrate the ‘spill over effects’ of monetary policy using the Mundell-Fleming framework.
6. Using a ‘indirect utility function’ framework, indicate how while the income effect would
result from any form of taxation, the distortion effect stems only from the substitution
effect.
7. Explain the rationale behind the Buchanan Thesis for shifting the debt burden to future
generations.

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