ECON 369 - Public Sector Economics

In Class Exercise One - Introduction Material

1.In this class we will look at different rules or institutions and then ..... (finish the sentence ).

2.In this class we will look at both the market arena and the political arena as processes or general orders, and not as planned institutions.  Explain.

3.What is the difference between public finance and public choice?  Provide examples of what an economist might study under public finance?  Public choice? 

4.Explain one similarity that an economist might encounter when studying markets vs. studying the political process.

5.  Explain two differences that an economist might encounter when studying markets vs. studying the political process.

6.  What is the standard "welfare" criteria for judging markets and/or the political process?  What is it's problem in terms of actual implementation?

7.  The subjective value standard states that one can't measure the cost/benefits of a rule.  So what can economists do?  Provide an example in your answer -- i.e. - how might an economist go about analyzing the difference between two different types of taxes?

8.  What other questions do you still have over this material?