A fundamental debate in public policy is of the tension between efficiency and equity. Bigger government role is argued for the sake of equity and less government interventions in the market mechanism is argued for the benefit of efficiency. (a) State the second fundamental theorem of Welfare Economics. What are the underlying assumptions and explain briefly why these assumptions imply the theorem? Using practical examples, explain how this theorem can be used to understand and evaluate the above debate. (b) How are social choices made in practice? For a particular public sector program or project, describe practical methods used by economists to measure efficiency and inequality. (c) Discuss why a National Weather Service (information about weather related forecasts and warnings) can not be left to the private sector andtherefore there is a rationale for government intervention.