Chapter 5 and 6 - Revision Questions.docx - Chapter...

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Chapter 5 (Equity & Social Welfare) and Chapter 6 (Public Choice Theory) Revision Questions 1. Distinguish between the so-called Pareto and Bergson criteria for a redistribution of income between rich and poor people. (15) 2. Discuss Nozick’s entitlement theory and briefly consider its relevance for South Africa.(15) 3. Explain why altruistic behaviour could provide a Pareto-based justification for a policy of income redistribution.(10) 4. Discuss the Rawlsian theory of justice and briefly comment on its relevance to the political economy of South Africa. (15) 5. Do you agree with the contention that majority rule does not necessarily produce outcomes representative of the majority view? Discuss with reference to the impossibility theorem and the phenomenon of vote trading. (20) Arrow's impossibility theorem ― No voting rule would meet all of the minimum ethical conditions for an acceptable social choice rule. 6. Discuss the theory of optimal voting rules, as propounded by Buchanan and Tullock. Make use of a diagram to illustrate the principle. (15)

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