Public Economics

Question 3 (40 marks) (a) 6 marks Discuss the relevance of the concepts of Pareto improvements and Pareto efficiency to public policy. (In) 24 marks A competitive market system is efficient. Discuss and explain this statement in detail. Your answer may include diagrams. (c)1l'.| marks Explain in detail the equity-efficiency trade-off in Economics and using a numerical example compare and discuss the Rawlsian and Utilitarian social welfare approaches to redistribution