1. Economic rent is practiced more commonly in a legal environment. Rent-seeking is unjust and unearned because it thwarts legitimate competition by artificially stifling the market. a. How does economic rent differ from rent-seeking? b. Supported by some theories, explain rent-seeking in public finance. c. What would be the cost of lobbying for the economy? d. Suggest TWO (2) prescriptive measures to mitigate rent-seeking behavior among public official and what are their strength and limitation? 2. The objective of Sovereign Wealth Funds (SWF) aims explicitly at developing financial returns to citizens and for economic growth; its funding comes from many sources such as revenue from exporting natural resource and fiscal budget surpluses. a. Provide an appraisal of SWF in Malaysia. b. Explain how higher public debt has link to SWF scandal? Present your case. 3. Public Financial Management (PFM) espouses the importance of Public Expenditure Management (PEM) in allocating and utilizing resources responsively, effectively and efficiently. a. PFM is a necessary but not sufficient PEM. Explain this notion. b. Explain the differences between the outcomes of PEM in contrast to a conventional budgeting. 4. Provide your understanding on TWO (2) economic scenarios below.

a. Tragedy of the commons in budgeting

b. Universal Basic Income as new fiscal instrument in promoting equality. c. Allocative role of government in annual budget d. Business model under sharing economy overcoming centralisation of assets under capitalism.