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					No. of Printed Pages : 5                        I MEC-006
             MASTER OF ARTS (Economics)

                      Term-End Examination
                           June, 2011

             MEC-006 : PUBLIC ECONOMICS

Time : 3 hours                          Maximum Marks : 100

Note : Attempt questions from each section as per direction
           therein.


                          SECTION-A
     Attempt any two questions from this section.
                                                    2x20=40
     Answer them in about 500 words each.
1.   Explain different compensation criteria for
     judging a public policy action.


2.   Discuss the conditions under which a government
     needs to intervene in the market.


3.   What do you understand by
     (a)      Natural monopoly
     (b)      Voting by feet


4.   Write notes on :
     (a)      Public goods vs. merit goods
     (b)      Lindahl Pricing

MEC-006                         1                    P.T.O.
                      SECTION-B
Note :      Attempt any five questions from this Section
            in about 300 words each :                 5x12=60
5.    (a) Define public debt and distinguish from
            external debt.
      (b) Is public debt a burden of the nation ?
           Substantiate your answer.

6.    Explain (a) Laffer curve and (b) Optimal income
      taxation.

7.    Discuss the instruments and institutions of
      government intervention.

8.    Distinguish between political federalism and fiscal
      federalism. What are the gains from fiscal
      federalism ?

9.    How is public policy formulated ? How is
      coordination problem tackled in a federal polity ?

10.   What are the different types of grants and what
      purpose they serve ?

11.   What is the difference between a Pareto efficient
      tax structure and an optimal tax system ?

12.   Write notes on any two of the following :
      (a) Phenomenon of rent seeking
      (b)   Tiebout hypothesis
      (c)   Financial deregulation
      (d)   Special interest groups and policy decision.


MEC-006                       2
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                                         H,11.1 "[MATT
                                          T1', 2011

                        71.1.1:ft.-006 :              ct)

Frxref : 3 q u2                                              3111 11T3            : 100

     :                  urig. rqq fT.
                                    M'                   17717 VT*. d
                                                       3.1-                 OruN /

                                         tqu8 -
               taus T1                   TYPt t 67ft \TR I "Sf- "W 37R
          F1WT 500 71             14 11', I
                                        1-R
                                                                           2x20=40

1.                lob         fwzrr4 4-rAichl                 tafaN
                           0,41(92-► r

2.             17ftft-P-Tfazli           i 1 W1f77 f7914              7:?R-)-cf
         3Wu11d1t1

3.       a-Trq PH-174 .TErr TP:r7W
                          *{
         (a) 3iTea-W Wr`el--1-
         (b) trizff 5.1(1                          --44T
                                                  f*

4.       1-1-1 1:17 tErrtt                 :
         (a)      'Hi            7t1.                       (merit goods)
         (b)       ciussw - 11:1-
                                d-317191.

MEC-006                                           3
            ta us 14 A'                               ).            31 I 3M*
                                                            az1t g11s
      dTR mits-FT 300                          1                              5x12=60
                                               q F\31 I

5.    (a)      t-tici,si lc*)           Im1 4 ti-TitiT           I Tff--T 77t
                   ul       fq7)7 -wrR-7 I

      (b)                                            Er{ Q7 ? 371-4 .71(
              w 14, q11",.R


6.                            -
                   oqltsqf •Tlf77 : (a)                    cist, (Laffer curve),
            (b) 31T           1
                             3- 7f et)(14uf


7.    *-101R1              1         1
                        1)7 t 34 ob(u- ) isT1T-2TT3-ff              7411 T1-177 I


8.    tl,7I1fna1                                                        1—
                                            t1•TIallalu tib.4011g 14 4q -. -rA-7 I
                          -.1(41q
                        -1,                   14
                                       clql 91 .51TRT


9.                            'WI -F91417 f*74 NohR 6)11'V TfEffrt

      (Iz141k1 14                                              -751T
                                            TITR7fT TRTNR t74 f*

      t?


10.   afafT1 sIcnit cf-qI ? 79-4 4)1 zt77:4
            t?

11.                                 <=1 3            3itrrt 74         474
                                                                      1-
                                                                      -1 I


MEC-006                                          4                              P.T.O.
12. F-i4--ircir4.11 14*f                     ftuTuft          :

       (a)    c-1411.1-3-1-*9.         c) :1-qT2.11


       (b)                        (Fiebout hypothesis)
       (c)    f01cl

       (d)    fd*cf              <-A                  f9-1#




MEC-006                                  5