Question 5 (a) Assuming you have completed your master's degree programme and employed as a director in one of the public sector institutions in your country. Generally, as a bureaucrat, if you are to decide whether to publicly produce a good/service or allow the market to produce, what three factors would you consider in determining 'who' provides the good/service? (5 Marks) (b) Within the context that when there are market failures, government intervention may not always yield the desired results, the alternative is private solutions. (i) Elaborate within the remit of the Coase' principle how this private solution is possible. (5 Marks) (ii) Juxtaposing the Coase' principle within the real world (or your country), how is this principle likely to be implemented? (5 Marks) AERC CREA Page 3 of 4 Question 6 (a) In every society, in deciding on which public goods to produce or projects to implement, societal members can vote. As they vote, there should be a clear rule on how the choice is to be made. In this respect, demonstrate how political interaction cost can help to determine the rule of voting. (8 Marks) (b) Critically evaluate the vote trading process. Demonstrate two advantages and two disadvantages which can occur in your country as parliamentarians/legislators undertake vote trading. (7 Marks)