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Tutorial I

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9 views2 pages

Tutorial I

Uploaded by

Parth Porwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Tutorial – I

1. The Indian constitution requires the Indian state to provide an adequate level of
education. What’s the economic rationale for such a requirement?

2. Many states in India run the mid-day meal schemes. What’s the economic rationale
for such a policy?

3. Some goods and services are provided directly by the government, while others are
funded publicly but provided privately. What is the difference between these two
mechanisms of public financing? Why do you think the same government would use
one approach sometimes and the other approach at other times?

4. Why does redistribution cause efficiency losses? Why might society choose to
redistribute resources from one group to another when doing so reduces the overall
size of the economic pie?

5. One rationale for imposing taxes on alcohol consumption is that people who drink
alcohol impose negative spillovers on the rest of society-for example, through loud,
unruly, and violent behaviour or intoxicated driving. If this rationale is correct, in the
absence of governmental taxation, will people tend to consume too much, too little,
or the right amount of alcohol? Will the same rational hold true for cigarettes as well?

6. Look at the composition of government spending at centre and state level. What are
the top 5 priorities of centre and states? Why do they differ?

7. To make higher education more affordable, the Indian government has established
public universities for free. Discuss the direct and possible indirect effects of such a
policy. Alternatively, government might have simply reimbursed the fee of the student
of any family with less than 1,00,000 rupees in income. In your opinion, which one will
lead to better outcome and why?

8. During covid, the Indian government took over the distribution of covid vaccine
instead of allowing the free market to distribute. In your opinion, was the public
intervention justified? What other kinds of public interventions might be possible?
Suggest three distinct types of possible interventions.

Data analysis based questions


1. Pick an Indian state of your own choice.
a. How has the distribution of your government spending as a percent of GDP by
function evolved over the last 30 years? Elaborate graphically? (Note: Choose
agriculture and allied activities, rural development, and energy as the three
components under the head of economic services of development
expenditure)
b. What can be the indicators under such head on which the spending has a direct
effect?
2. Given the Indian state of your own, where does your government raise revenue, and
how has it evolved over 30 years?
3. Does the GSDP (Gross state domestic product) of your state aligned with any
components of total tax revenue?

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