End-of-chapter questions

Questions are available for each chapter of the book. They have been designed to help you reflect on what you have learned, to test your knowledge and to provide points for discussion. Click on the links below to access questions for each chapter.

Part I: Introduction

1. The Foundations of Public Sector Theory
2. Market Failures
3. The Fundamental Theorems of Welfare Economics

Part II: Public Expenditure Theory and Policy

1. The Social Welfare Function and the Quest for Distributive Justice
2. Applying the Social Welfare Function
3. Externalities: Theoretical Issues
4. Externalities: Policy Considerations
5. Nonexclusive Goods
6. Decreasing Cost Services: the Natural Monopolies
7. U.S. Transfer Payments: the Public Choice Perspective
8. Practical Issues in Designing Transfers to the Poor
9. Social Insurance: Social Security

Part III: Tax Theory and Policy

1. The Pursuit of Equity in Taxation
2. Applying Ability-to-Pay Principles: Federal Personal Income Tax
3. Taxes and Inefficiency: the Excess Burden of Taxation
4. The Trade-off Between Equity and Efficiency in Taxation
5. Taxes, Transfers, and Private Information
6. Tax Incidence: Theoretical Issues
7. Tax Incidence: Applications

Part IV: Cost–Benefit Analysis

1. Cost–Benefit Analysis

Part V: Fiscal Federalism

1. Fiscal Federalism: the Assignment of Functions among Governments
2. Efficiency and Equity Issues with Mobile Resources
3. Grants-in-Aid
4. Epilogue