1.Discuss the difference between a partial equilibrium analysis and a general equilibrium analysis. Illustrate using examples for each. (Hint: I mentioned to you during tutorials that you are to apply the theories to real life situations)

2. Explain briefly using equations why allocation of resources arising in a general competitive equilibrium is economically efficient?

3. What is the first fundamental theorem of welfare economics and what is the significance of it?

4. Explain the second fundamental theorem of welfare economics and why do you think it is important?

5. Explain the following:

a. Median voter theorem

b. Log rolling

c. For both (a) and (b), state one advantage and disadvantage?

6. State the axioms of the Arrows Impossibility Theorem and discuss how majority voting will conflict with any of the Arrow's axioms for collective choice.

7. Using relevant diagram, show and discuss that competitive equilibrium maximises societal welfare. Using the same diagram, show and discuss the impact of non-competitive outcome on societal welfare.