Question: 1. ] a. Explain what an equitable allocation is and why an optimal allocation may be unequal. (40%) b. Explain the conditions for exchange efficiency,

1. ] a. Explain what an equitable allocation is and why an optimal allocation may be unequal. (40%) b. Explain the conditions for exchange efficiency, production efficiency and production mix efficiency. (30%) c. Explain how an optimal allocation may be reached with government intervention based on the first and second welfare theorems (30%)

2. ] a. What are the defining characteristics of a pure public good? (30%) b. How can one determine the efficient level of provision of a public good? (30%) c. Why does the free-rider problem make it difficult for markets to provide the efficient level of public goods? (40%)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Board CHAPTER 1 Economics: Foundations and Models n this book, we use economics to answer questions such as the following What determines the prices of goods and services from bottled water to smart...

Hi Sirs, I need your help. This assignment due date is next week thursday (30/03/2017). The instructions are as in the attached doc. and also the Companies which will be used for it are attached...

Please complete the assignment and t explain all the ratios that was use and effect. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549...

International Journal of Economics and Financial Issues ISSN: 2146-4138 available at http: www.econjournals.com International Journal of Economics and Financial Issues, 2016, 6(2), 392-401. Foreign...

business law For the year ended 30 June 2012, the audit team included a manager, two supervisors, two qualified seniors and three trainees. This audit, which lasted approximately five weeks, was very...

A production possibility curve would ________ if the availability of an input decreased and would ________ if a lack of technology decreased production efficiency. (1 point) shift outward; shift...

2 a. Suppose that the government is restricted in its choice of income tax schedule to an affine income tax schedule { = a + ba where 0 0 who purchases commodities r and y at market prices p, > 0 and...

Debate with your team on the Codification Research Case. Have half the team support the sales managers position and another part of the team support the CFOs position. Present both sides and come to...

A confound is a source of confusion regarding what? Select one: a. The difference between O and X b. The need for a pretest or a posttest c. The participant demographics d. The explanation for a...

what do I take off the trial balance to get my statement of stockholders at Queen

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...