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Semester 5 Subjects

►Game Theory & Strategic Interactions

►Economic Growth & Business Cycles

►Introductory Development Economics

►DSE – Advanced Econometrics

►DSE – Law and Economics

►DSE – Environmental Economics

►DSE – Open Economics Macroeconomics

►DSE – Public Economics

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Reading List

Click Here for Reading List of Public Economics

Recommended Readings

►John Cullis and Philip Jones, Public Finance and Public Choice, Oxford University Press, 2nd edition, 1998.

►Jean Hindriks and Gareth D. Myles. Intermediate Public Economics, MIT Press, 2nd edition, 2013.

►Joseph E. Stiglitz and Rosengard J. K. Economics of the Public Sector, 4th edition, W. W. Norton and Co. 2015.

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Demo Quiz

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Created by admin

Theories of Public Sector Test #1

1. Please Read the Questions and all the options Carefully, Before Selecting Your Choice.
2. You are not Allowed to edit your answers after submission.
3. The Paper has Ten Questions
4. Time Allowed is 10 Minutes.
5. It is necessary to enter your valid Email id to attempt this test.

 

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1 / 10

Which of the following is NOT a reason for public sector intervention?

A) Correcting externalities

B) Ensuring equitable distribution of resources

C) Maintaining competition

D) Maximizing individual profits

2 / 10

The public sector is often involved in the provision of merit goods because:

A) These goods are always overprovided by the market.

B) Individuals may underconsume them if left to the market.

C) They do not provide significant social benefits.

D) Private companies cannot produce them.

3 / 10

Which of the following best describes a market failure?

A) When the private sector is more efficient than the public sector.

B) When government intervention is unnecessary.

C) When the free market fails to allocate resources efficiently.

D) When there is a surplus of goods in the market.

4 / 10

Public goods are a justification for the public sector because:

A) They can be easily provided by private companies.

B) They are non-excludable and non-rivalrous.

C) They generate high profits for businesses.

D) They are typically inexpensive to produce.

5 / 10

Which of the following is a primary justification for the existence of the public sector?

A) Profit maximization

B) Promotion of equity and fairness

C) Encouragement of monopolies

D) Minimization of taxes

6 / 10

he public sector is often involved in the redistribution of income. This is primarily to:

A) Increase government revenue

B) Reduce income inequality

C) Encourage entrepreneurship

D) Support large corporations

7 / 10

Which of the following is an example of a public sector activity aimed at correcting market failure?

A) Taxing private companies

B) Providing free education

C) Privatizing public services

D) Reducing government spending

8 / 10

Government regulation in certain industries is justified because:

A) The private sector always underperforms.

B) It ensures that monopolies are maintained.

C) It protects consumers from harmful practices.

D) It allows the government to maximize profits.

9 / 10

Which of the following is a characteristic of a public good?

A) It is non-rivalrous and non-excludable.

B) It is always produced by private firms.

C) It is subject to the law of supply and demand.

D) It is primarily for profit generation.

10 / 10

The concept of "externalities" is often used to justify public sector intervention. What is an externality?

A) A benefit or cost that affects third parties not directly involved in an economic transaction.

B) The total production cost of a good or service.

C) A tax imposed by the government on certain goods.

D) The exclusive benefit enjoyed by the producer of a good.

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The Question Paper will be of 90 Marks

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Economics (H) Semester V [ UGCF 2024 ]

Video Lectures, PDF Notes, Mock Tests & Live Doubt Sessions are offered for the following Subjects for BA (Hons) Economics Semester V, Delhi University