ECS3704
STUDY
GUIDE
,PUBLIC ECONOMICS ECS3704
Prescribed material
Black, Calitz and Steenekamp 2011 (5th edition)
Study guide
note the chapters + sections of textbook
demarcated for STUDY in study guide
additional study material in SG (eg sections
3.1 and 4.4 – see p7 of TL101)
Approach to learning (see SG pxi)
The guide is the manual
in each SU: (1) read introduction to each
section
(2) study the prescribed section in textbook
indicated under STUDY
(3) test your knowledge using ACTIVITY
(4) repeat (1) to (3) … practice drawing
diagrams
go to next section
Diagrams are very important
indifference curves and budget lines (axes
measure 2 goods or services)
isoquants and isocost lines (axes measure
capital and labour)
demand and supply curves (axes measure
price and quantity of 1 good or service)
- price elastic curves
- price inelastic curves
,EXAM PAPER 2014(1)
FILL-IN PAPER (return to invigilator)
o lines provided indicate “how much” to write –
rough work at end of paper can also be used
COMPULSORY SECTION A (3 questions = 40
marks) – covers whole syllabus
o Question 1
= 5 questions x 1-3 marks each (define,
describe, list, explain)
o Questions 2 & 3 – SU 2 and 8
15 marks each (discuss, explain)
ELECTIVE SECTION B (3 from 5 = 20 marks each)
o all questions have two sub questions
DIAGRAMS NB!
IMPORTANT ECONOMISTS: Pareto, Pigou, Coase,
Niskanen, Bergson, Baumol, Wagner, Meltzer &
Richard, Peacock & Wiseman, Musgrave & Rostow,
Brown & Jackson, Tiebout, Laffer, Corlett & Hague,
Ramsey
, MODULE OUTLINE
Section 1: The role of government
Benchmark model (su 1; ch 2)
Market failure
Public goods and externalities (su 2; ch3)
Imperfect competition (su 3; ch 4)
Equity and social welfare (su 4; ch 5)
Public choice and government failure (interest
groups and rent seeking) (su 5; ch 6)
Section 2: Public expenditure
• Public expenditure growth (macro and micro
explanations) (su 6; ch 7)
• Poverty and income distribution (subsidies) (su 7;
ch 8)
Section 3: The economics of taxation
Tax equity (tax shifting and incidence) (su 8; ch
10)
Tax efficiency (excess burden) (su 9; ch 11)
Income taxation (work effort) (su 10; ch12)
Section 4: Fiscal federalism (decentralisation and
intergovernmental grants) (su 11; ch 17)
STUDY
GUIDE
,PUBLIC ECONOMICS ECS3704
Prescribed material
Black, Calitz and Steenekamp 2011 (5th edition)
Study guide
note the chapters + sections of textbook
demarcated for STUDY in study guide
additional study material in SG (eg sections
3.1 and 4.4 – see p7 of TL101)
Approach to learning (see SG pxi)
The guide is the manual
in each SU: (1) read introduction to each
section
(2) study the prescribed section in textbook
indicated under STUDY
(3) test your knowledge using ACTIVITY
(4) repeat (1) to (3) … practice drawing
diagrams
go to next section
Diagrams are very important
indifference curves and budget lines (axes
measure 2 goods or services)
isoquants and isocost lines (axes measure
capital and labour)
demand and supply curves (axes measure
price and quantity of 1 good or service)
- price elastic curves
- price inelastic curves
,EXAM PAPER 2014(1)
FILL-IN PAPER (return to invigilator)
o lines provided indicate “how much” to write –
rough work at end of paper can also be used
COMPULSORY SECTION A (3 questions = 40
marks) – covers whole syllabus
o Question 1
= 5 questions x 1-3 marks each (define,
describe, list, explain)
o Questions 2 & 3 – SU 2 and 8
15 marks each (discuss, explain)
ELECTIVE SECTION B (3 from 5 = 20 marks each)
o all questions have two sub questions
DIAGRAMS NB!
IMPORTANT ECONOMISTS: Pareto, Pigou, Coase,
Niskanen, Bergson, Baumol, Wagner, Meltzer &
Richard, Peacock & Wiseman, Musgrave & Rostow,
Brown & Jackson, Tiebout, Laffer, Corlett & Hague,
Ramsey
, MODULE OUTLINE
Section 1: The role of government
Benchmark model (su 1; ch 2)
Market failure
Public goods and externalities (su 2; ch3)
Imperfect competition (su 3; ch 4)
Equity and social welfare (su 4; ch 5)
Public choice and government failure (interest
groups and rent seeking) (su 5; ch 6)
Section 2: Public expenditure
• Public expenditure growth (macro and micro
explanations) (su 6; ch 7)
• Poverty and income distribution (subsidies) (su 7;
ch 8)
Section 3: The economics of taxation
Tax equity (tax shifting and incidence) (su 8; ch
10)
Tax efficiency (excess burden) (su 9; ch 11)
Income taxation (work effort) (su 10; ch12)
Section 4: Fiscal federalism (decentralisation and
intergovernmental grants) (su 11; ch 17)
