Analyzing the public sector: Role of the government
- The markets are considered as the private sector
- The government is considered as the public sector
- Efficiency: producing what the consumer wants at the least cost.
- Competitive market outcome maximizes the number of efficient trades and hence maximizes efficiency.
Transclude of Introduction-PE-5-2024-12-16-09.26.30.excalidraw
Questions and Tasks
what is the concept of Dead weight loss. Dominic Salvator
how does taxation lead to inefficiency in a perfect competition market?
what do you mean by Excess Burden or Dead weight loss in Layman terms? Give an example.
task Calculate the revenue/capital to GDP ratio?
- Find out if the value matches the one given in the RBI website.
- What’s the latest base year? Re-index to that year (1983-2024)
- What GDP to take in the denominator: current or constant? And state the reason?
- Current because the expenditure is given at current.
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- taxes = NDP
- NDP + depreciation = GDP
- GDP at market price or GDP at factor cost? And the reason.
task Go through ENY economic watch.
what is the difference between:
- GDP vs NDP
- GDP vs GNP
- GDP vs (MP & FC)
- GDP vs GVA
what are some of the PSE (Public Service Enterprises)?
what are the other insurance companies owned by the government? Other than LIC.
check if railways are privatized abroad.
why was railway budget different from the general budget?