ECS3704
Assignment 3 PORTFOLIO Semester 2 2026
Unique number:
Due date: October 2026
Short biography
This portfolio reflects my learning as a student taking ECS3704 in 2026. I have
become interested in why the government collects taxes, gives social support and
decides which services deserve public money. These matters are familiar in South
Africa, where many households experience unemployment, high living costs and
uneven public services. The discussions helped me connect economic ideas with
challenges seen in communities, rather than treating economics as numbers alone.
Introduction
Public economics deals with decisions about government spending, taxation,
distribution and the use of scarce resources. In the weekly activities, different
economic tools helped me assess whether public policies can improve people’s lives
, Short biography
This portfolio reflects my learning as a student taking ECS3704 in 2026. I have
become interested in why the government collects taxes, gives social support and
decides which services deserve public money. These matters are familiar in South
Africa, where many households experience unemployment, high living costs and
uneven public services. The discussions helped me connect economic ideas with
challenges seen in communities, rather than treating economics as numbers alone.
Introduction
Public economics deals with decisions about government spending, taxation,
distribution and the use of scarce resources. In the weekly activities, different
economic tools helped me assess whether public policies can improve people’s lives
and whether they can create new problems. This portfolio revisits the required
activities from Lessons 1 to 11, with Lesson 8 excluded. It also includes Assessment
1 on the environmental cost of steel production. The explanations focus on the
meaning of each concept and its relevance to South Africa (ECS3704, 2026).
Lesson 1: Redistribution, Pareto optimality and economic failure
Pareto optimality refers to a situation where helping one person would require
another person to lose something. It measures efficiency, but it does not tell us
whether income or resources are shared fairly. For example, an economy can use its
resources efficiently while some families still struggle to afford enough food.
Redistribution attempts to change who receives income or resources, often through
taxes and social grants. A transfer may leave the taxpayer with less disposable
income, meaning the change is not automatically a Pareto improvement (Calitz et al.,
2023).
There are situations where redistribution may also bring wider benefits. Less
hardship can contribute to safer neighbourhoods and better social stability, which
could benefit those who pay taxes. In my understanding, that is why fairness and
efficiency should be considered separately before judging a government programme.
The outcome depends on how transfers affect work, savings and the wellbeing of the
Assignment 3 PORTFOLIO Semester 2 2026
Unique number:
Due date: October 2026
Short biography
This portfolio reflects my learning as a student taking ECS3704 in 2026. I have
become interested in why the government collects taxes, gives social support and
decides which services deserve public money. These matters are familiar in South
Africa, where many households experience unemployment, high living costs and
uneven public services. The discussions helped me connect economic ideas with
challenges seen in communities, rather than treating economics as numbers alone.
Introduction
Public economics deals with decisions about government spending, taxation,
distribution and the use of scarce resources. In the weekly activities, different
economic tools helped me assess whether public policies can improve people’s lives
, Short biography
This portfolio reflects my learning as a student taking ECS3704 in 2026. I have
become interested in why the government collects taxes, gives social support and
decides which services deserve public money. These matters are familiar in South
Africa, where many households experience unemployment, high living costs and
uneven public services. The discussions helped me connect economic ideas with
challenges seen in communities, rather than treating economics as numbers alone.
Introduction
Public economics deals with decisions about government spending, taxation,
distribution and the use of scarce resources. In the weekly activities, different
economic tools helped me assess whether public policies can improve people’s lives
and whether they can create new problems. This portfolio revisits the required
activities from Lessons 1 to 11, with Lesson 8 excluded. It also includes Assessment
1 on the environmental cost of steel production. The explanations focus on the
meaning of each concept and its relevance to South Africa (ECS3704, 2026).
Lesson 1: Redistribution, Pareto optimality and economic failure
Pareto optimality refers to a situation where helping one person would require
another person to lose something. It measures efficiency, but it does not tell us
whether income or resources are shared fairly. For example, an economy can use its
resources efficiently while some families still struggle to afford enough food.
Redistribution attempts to change who receives income or resources, often through
taxes and social grants. A transfer may leave the taxpayer with less disposable
income, meaning the change is not automatically a Pareto improvement (Calitz et al.,
2023).
There are situations where redistribution may also bring wider benefits. Less
hardship can contribute to safer neighbourhoods and better social stability, which
could benefit those who pay taxes. In my understanding, that is why fairness and
efficiency should be considered separately before judging a government programme.
The outcome depends on how transfers affect work, savings and the wellbeing of the
