Public Economics test answers, Part 2

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Public Economics Test of the 2.60 issues.

Question 1. What is studying economics of the public sector?
1. Public economics studies the laws and practical problems that are related to the production of public goods and collective, economic mechanisms for achieving social goals and interests of the non-market interaction.
2. Public Economics examines the economic mechanisms to achieve social goals.
3. Public economics studies the laws and practical problems that are related to the production of public and collective goods.


Question 2. What is the public sector?
1. The public sector is such an area of \u200b\u200bthe economy, or that part of the economic space, where: the market does not work or only partially valid, and therefore dominates the non-market method of coordination; produced and consumed not private, and public goods; economic balance between the consumers of public goods by the state, local government and voluntary and community organizations with the appropriate social institutions (primarily via fiscal policy).
2. The public sector is a set of economic resources at the disposal of the state - a state organization, budget revenues and expenditures.
3. The public sector operates in the forms of state-owned enterprises and institutions, taxation and public expenditure programs.


Question 3. What is the main difference between the private and public sectors of the economy?
1. The main difference between the private and public sectors is that public sector organizations are non-profit (ie, do not pose a major problem in making a profit), and the dominant role of the public sector plays a state.
2. The main difference between the private and public sectors is that public sector organizations are commercial that is, pose a major challenge to make a profit.
3. The main difference between the private and public sector of the economy is that in the public sector, the government does not play a dominant role.


Question 4: What is special about the economy of the public sector?
1. The feature of the public sector of the economy is that it considers the state in general, a number of economic operators, it reveals the logic of economic behavior and focuses on the specific economic benefits, the supply of which takes on the public sector, and the efficiency of production of these goods.
2. Public Economics aims to explain how the preferences of citizens are transformed into objectives pursued by the state, the state is seeking the means to achieve these goals, it spends these funds and thereby its economic activities may become more rational.
3. Features of the economy of the public sector - the state is one of the subjects of economic activity, although it has one difference: the state and its agencies have the right of coercion within and on the basis of laws justified on grounds of economic efficiency and social justice.

Question 5. What is the role of the state in the economy of the public sector?
1. The state, like entrepreneurs and non-profit organizations operating in the market environment, and the need for its participation in the economic life occurs only when the free market forces do not provide optimum placement and use of resources.
2. The economic role of the state in the modern world is increasing due to the growing scale and complexity of the structure of the market economy. The level of existing policies.
3. The State can through legal, administrative and economic

Additional information


Question 6: What are the tasks of the state in the economy of the public sector?
1. The most important tasks of the state are: the establishment and maintenance of legal regime providing for the right to free development of personality and guarantees the equality of all before the law, guarantees of private property, freedom of speech, etc .; the government is doing everything possible to maintain and develop effective competition; It eliminates the disadvantages of the state of the market, conducting stabilization and structural policies; It provides social protection, trying to equalize incomes of workers.
2. The most important tasks of the state are: the establishment and maintenance of legal regime providing for the right to free development of personality and guarantees the equality of all before the law.
3. The most important tasks of the state are: the establishment and maintenance of legal status; maintaining and developing effective competition.

Question 7: What are the objectives of the public sector in a mixed economy?
1. In a mixed economy, the public sector has to participate in solving the problems, which are divided into two types. The first relates to achieve Pareto improvements in the presence of defects (gaps) of the market, the second - the redistribution of income or property, in accordance with the principles of social justice.
2. In a mixed economy, the public sector has to participate in solving the problems, which include achieving Pareto improvements.
3. In a mixed economy, the public sector has to participate in solving the problems, which include the redistribution of income in accordance with the principles of social justice.

Question 8. What is called Pareto improvement?
1. Pareto improvement is called a change in the course of economic processes, which increases the level of welfare for at least one of their members, if this is not allowed to decrease the welfare of any of the other participants. In the analysis of concrete situations of public sector economics seeks to identify ways of Pareto optimization, ie, achieve all possible Pareto improvements.
2. Pareto improvement is called a change in the course of economic processes, which increases the level of welfare for at least one of their members.
3. Pareto improvement called the change in the economic process, which allows reduction of the welfare of one of the participants.

Question 9. What is called Pareto - optimization, or Pareto is an optimal condition?
1. The Pareto-optimal state in the best interests of each individual, provided that the initial allocation of resources (property, income) between individuals set and can not be changed except by mutual consent.
2. Pareto-optimal state provides for the allocation of resources (property, income) between individuals.
3. Pareto-optimal state in the interests of each individual.

Question 10. What is called flaws of the market, market failure or errors in the market?
Question 11. How does the state regulate the activities of natural monopolies?
etc.

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