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Ollscoil na hÉireann, Gaillimh GX_____
National University of Ireland, Galway
Summer Examinations 2007 / 2008
Exam Code(s) 3BA1, 3BA5, 3BA6, 4BA4, 1OA1, 1EM1, 3BC1, 4BC(2,3,4,5), 1EK2, 1EK Exam(s) B.A., B.A. (ESS), B.A. (PSP), B.A. (Int’l), Occasional, Erasmus, B.Comm., B.Comm. (Language), H.Dip.Econ.Sc. Module Code(s) EC Module(s) Public Economics Paper No. 1 Repeat Paper External Examiner(s) Professor Robert E. Wright Internal Examiner(s) Mr. Brendan Kennelly Dr. Mary Silles Instructions: Instructions: 5 Questions, Attempt any 3. Duration 2 hours No. of Pages 2 Department(s) Economics Course Co-ordinator(s) Dr. Mary Silles Requirements : MCQ Handout Statistical Tables Graph Paper Log Graph Paper Other Material
Instructions: 5 Questions, Attempt any 3.
- Welfare Economics 1(i) Explain how a central planner chooses the socially optimal division of resources. 1(ii) Explain the limited practical applicability of the Second Theorem of Welfare Economics.
- Public Intervention 2(i) What is the basic role of the government? 2(ii) Set out a number of theories directed at explaining public sector growth during the past century.
- Public Goods 3(i) Explain how a public good differs from a club good. 3(ii) Explain how can one determine the efficient level of provision of a public good.
- Imperfect Competition 4(i) How is the intensity of competition in a market measured? 4(ii) Demonstrate that equilibrium of an imperfectly competitive market (e.g., a monopoly) is not Pareto-efficient in general.
- Externality 5(i) Explain the fundamental limitations of the Coase Theorem. 5 (ii) Explain how externalities may give rise to inefficiency in a competitive market economy and how corrective taxes could reduce the effects of a negative externality.
