Syllabus T. Y. B. A. Paper : IV advanced economic theory with effect from academic year 2010-11 in idol

 
13.6 QUESTIONS 
 
1. Explain in detail the concept of tariff. 
2. Explain the price effects of tariff. 
3. Explain the welfare effects of tariff. 
4. Explain the effects of tariff on large and small country. 
5. Distinguish between Free trade and Protection. 
6. Write notes on: 
i) Free trade policy 
ii)Protection trade policy 

---



14 
 
 
MOUDLE 8: Public Economics 
 
MARKET FAILURE AND ROLE OF STATE 
 
Unit Structure 
 
14.0 Objectives 
14.1 Introduction 
14.1.1 Introduction to Public Economics 
14.2 Market Failure and Rationale for Government Intervention 
14.2.1 Role of State or Government 
14.3 Public Expenditure Theory 
14.3.1 Public Goods
14.3.2 Free Rider Problem 
14.3.3 Pure and Impure Public Goods 
14.3.4 Privately Provided Public Goods 
14.3.5 Publicly Provided Private Goods 
14.3.6 Rationing Devices for Publicly Provided Private Goods 
14.3.7 Efficiency Condition for Public Goods 
14.3.8 Collective Demand Curve 
14.3.9 Determination of Efficient Production of Public Goods 
14.4 Let us sum up
14.5 Question Pattern 
14.0 OBJECTIVES 
 
To know the reasons why markets fail to produce efficient 
outcomes. 
To know the role of government in making it possible for 
markets to work at all. 
To know how the government intervene in the market‘s 
allocation of resources. 

---

To know the role of government approach to market failure. 
To know what distinguish public goods, those goods which 
are typically provided by government, form privately provided 
goods. 
To now why will private markets undersupply pure public 
goods 
To know free rider problem with respect to the public goods 
To know what determines an efficient supply of pure public 
goods. 
To know the determination of efficient production of public 
goods.