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

14.5 QUESTIONS 
1. What do you understand by market failures? Examine the role or 
rationale for government intervention. 
2. Explain the properties of public goods and the form of market 
failure with respect to public goods. 
3. Explain the free rider problem associated with the public goods. 
4. Explain the distortions Associated with Supply of public Goods 
freely by the government. 
5. Explain the devices for rationing for Publicly Provided Private 
Goods. 
6. Discuss the efficiency condition for the supply of public goods. 
7. Derive the collective or market demand curve for public goods 
and show the efficient supply of public goods. 
8. 
―The supply of public goods is efficient at the point where the 
sum of the marginal rates of substitution equals marginal rate of 
transformation.‖ Explain the statement. 
9. Write notes on: 
1. Public goods 
2. Private goods 
3. Pure and impure public goods 
4. Free rider problem 
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15 
 
PRINCIPLES OF TAXATION 
 
Unit Structure 
15.0 Objectives 
15.1 Principles of Taxation 
15.1.1 The Concept of Equity 
15.1.2 The Cost of Service Principle
15.1.3 The Benefit Principle 
15.1.4 The Ability-to-pay Principle of Equity in Taxation
15.2 Incidence of Taxation 
15.2.1 Factors Influencing Incidence of Taxation 
15.3 Excess Burden of Taxation
15.4 Summary
15.5 Questions 
 
15.0 OBJECTIVES 
 
To know the concept of equity. 
To know how the different principles of taxation distribute the 
burden of tax. 
To understand the impact, shifting and incidence of taxation. 
To now different approach of incidence of taxation. 
To know the tax shifting and tax sharing for tax authorities. 
To discuss on factors influencing incidence of taxation. 
To know excess burden of a unit tax and on wage income