EPS_期中考试09-10(二).pptVIP

Economics of the Public Sector 09-10(二)期中考试试卷 Key Concepts 1.A mixed econony 2.Privatization 3. Positive economics 4.Non-rival consumption 5. A uniform taxation6.A progressive tax system 7.Principal-agent problems 8.Deregulation Answer the following questions 1.What are the rationales for government economic activities? 2.What are the market failures associated with public goods? 3.Give some examples for pure and impure public goods? 4.What are the rationing devices for publicly provided private goods5.Explain the voting paradox? 6. With progressive taxation, would the median voter vote for an efficient level of public expenditure? Why? 7.How to deal with market failures arising from natural monopoly? 8.What is the growing consensus on government’s role in productionExplain the following questions by drawing figures 2.Explain distortions associated with uniform provision? 5.Illustrate individual’s choice of “most preferred” level of government expenditures? 6.Explain the single-peaked and double-peaked preferences? 7.Draw the income distribution panel with a symmetric income distribution and a skewed income distribution? 8.Explain Lindahl equlibrium? Case study for the economic role of government The U.S. Economic Stimulus Plan Background IntroductionPresident Barack Obama took office in January 2009 facing the countrys biggest economic crisis since the Second World War. Obama and Democratic Party leaders have suggested an economic stimulus package to confront the crisis. This package, they say, will save or create over three million U.S. jobs and provide most Americans with tax cuts. In the longer term, Obama says his plan will stimulate vital sectors of the economy such as energy and health care, making U.S. firms more competitive internationally. When Democratic lawmakers first introduced stimulus legislation in early 2009, they presented a bill with a price tag of $825 billion, though many analysts say the total cost of the plan will likely in