Economic and Social Policy
Economic and Social Policy
Year one Semester 1 2021
Practical Sheet 1 GDP and Growth Potential Exam Questions
Question 1
Use the Solow growth model to explain the importance of investment in contributing to the output level and growth of a country. (Remember to state the assumptions underpinning your model) (20 marks)
21st century progress cannot be measured with 20th century statistics
Based on readings provided on this module, critically analyse the role of wealth and assets in producing welfare and future sustainability in an economy with specific reference to the UNs Changing Wealth of Nations Report and social capital. (30 marks)
Question 2
In recent years, academics have suggested broader formulations of GDP that attempt to precisiely measure intangeble goods, the distribution of growth and environmental factors.
Based on readings provided on this module, explain and evaluate two recent proposals for modifing GDP as a measure of growth. (50 marks)
Question 3
Data is unlike other goods and assets we are used to buying and selling. It has particular economic characteristics that affect how we should think about its value.
Based on readings provided on this module, outline and explain four economic characteristics of data and provide an example in each case. (20 marks)
Based on readings provided on this module, distinguish between market-based and non-market-based approaches to valuing data. (10 marks)
Based on readings provided on this module, discuss three potential approaches that policy-makers could follow to overcome the substantial challenges to creating a thriving data economy. (20 marks)
Economic and Social Policy
Year one Semester 1 2021
Practical Sheet 2 Equity and Inequality (Potential Exam Questions)
Question 1
Societies inevitably face an invidious choice between efficient production and equitable wealth and income distribution
Evaluate the arguments for reducing inequality, with particular attention paid to the link between inequality and growth based on readings provided on this module. (25 marks)
Outline and critically examine the impact Covid has had on inequality globally, and in Ireland, using two key examples in each case to support your answer based on readings provided on this module. (25 marks)
Question 2
Outline and explain the approach to measuring relative poverty in Ireland. Critique this measure based on readings provided on this module. (20 marks)
Living life on a poverty income is common in Irish society. It is the reality for around 700,000 people living in 270,000 households across the state.
Based on readings provided on this module, outline and explain the cost of poverty in Ireland across one public service sector and critically discuss the role of intergenerational inequality in Irish society and the effect that Covid-19 may have on this. (30 marks)
Question 3
Research on poverty in rich countries has relied primarily on household income to capture living standards and distinguish those in poverty. However, with increasing awareness of the limitations of income as the sole means of capturing both levels of poverty and the underlying processes, there has been a fundamental shift towards a multi-dimensional approach.
Outline and discuss the multiple dimensions approach to measuring poverty in Ireland developed by the ESRI and critique a single measure approach based solely on income based on readings provided on this module. (30 marks)
Research in recent years has revealed major insights into cognitive and non-cognitive ability and their relationship to poverty and financial decision making from an individual perspective.
Discuss the research evidence underpinning the relationship outlined above and explain how this can be used to inform future policy making on poverty based on readings provided on this module. (20 marks)
Economic and Social Policy
Year one Semester 1 2021
Practical Sheet 3 Taxation (Potential Exam Questions)
Question 1
Outline and explain, using an economic model covered on this module, the deadweight loss from the imposition of a tax and comment on the legal imposition of a tax compared to the effective tax incidence i.e. who actually pays for the tax the consumer or the producer. (25 marks)
Critically analyse the current Irish income tax system with at least one other OECD country and critically assess the system in terms of marginal tax rates, the tax wedge and replacement rates based on readings provided on this module. (25 marks)
Question 2 (50 marks)
Outline and explain the four canons of taxation proposed by Adam Smith and then use these to critically evaluate the current Irish indirect tax system based on readings provided on this module. (20 marks)
Growing inequality, financial instability, the pandemic and climate change have all contributed to swing back from the post-1980 liberalising consensus to an acceptance that smart government intervention in the economy can make for more and better shared prosperity.
Discuss the rationale for introducing a wealth tax in developed countries to aid in financing Government spending based on readings provided on this module and its potential to raise tax revenue in a selected country of your choice. (30 marks)
Question 3 (50 marks)
Explain, using an economic model covered on this module, the positive externalities associated with Research and Development expenditure. (25 marks)
Ireland currently has a 25% tax credit for Research and Development expenditure which can be set against a firms corporation tax liability.
Based on readings provided on this module, critically examine the impact of this tax credit on Research and Development in Ireland and assess any potential dead weight loss associated with this policy measure. (25 marks)
Economic and Social Policy
Semester 1 2021
Practical Sheet 4 Competition and Regulation (Potential Exam Questions)
Question 1 (50 marks)
Outline and explain the new theory of regulation based on modern behavioural economics and boundedly rational consumers covered on this module. (20 marks)
Based on readings provided on this module, critically evaluate a recent Big Tech competition case and ruling at an EU level that you are familiar with, with a focus on (i) the market failure issue, (ii) the rulings potential to increase the forces of competition in the market and (iii) the benefits to consumers and the potential impact on market power and dead weight loss. (30 marks)
Question 2 (50 marks)
Competition is inherently a messy business but it has shown itself invariably to lead to more innovation, better choices and lower prices.
Outline and explain Competition law and policy objectives in Ireland with reference to the Competition and Consumer Protection Commission (CCPC). (20 marks)
Until the 1990s, US markets were more competitive than European markets. Today, European markets have lower concentration ratios, lower excess profits, and lower regulatory barriers to entry.
Discuss the evidence on the level of competition in the European Economy versus the US and critically analyse features of the European economy that support pro-competitive reforms based on readings provided on this module. (30 marks)
Question 3 (50 marks)
If we want our regulators to do better, we have to embrace a simple idea: regulation isn't an obstacle to thriving free markets; it's a vital part of them - James SurowieckiOutline and explain three theories of regulation covered on this module and provide a real-world example in each case. (20 marks)
If you allow for a purely capitalistic society, without any type of regulation at all, you will get one monopoly that will eat all of the smaller fish and own everything, and then you'll have zero capitalism, zero competition - it would just be one giant company - Serj Tankian
Evaluate one competition case in Ireland that was investigated by the CCPC and covered on this module with regard to (i) the anti-competitive practice undertaken, (ii) the impact on competition in the market in terms of consumers and businesses and (iii) the outcome of the investigation. (30 marks)
Economic and Social Policy
Semester 1 2021
Practical Sheet 5 Covid Policy (Potential Exam Questions)
Question 1 (50 marks)
Eurozone inflation rises to a decade high of 3% as analysts fear a wave of stagflation in the economy.
Based on readings provided on this module, discuss three key drivers of inflation currently in Europe and use a long run aggregate demand and aggregate supply model to explain the policy dilemma caused by stagflation in the economy. (25 marks)
Based on readings provided on this module, comment on the implementation of the pandemic unemployment payment (PUP) system in Ireland and critique this measure from an economic viewpoint. (25 marks)
Question 2 (50 marks)
Explain what is meant by an Optimum Currency Area (OCA) and, based on readings provided on this module, discuss how closely the Euro area reflects an OCA in practice. (25 marks)
Compare the monetary and the fiscal policy responses by Europe and the US to the Covid crises and discuss which region you think is most successfully navigating the adverse economic consequences of the pandemic based on readings provided on this module. (25 marks)
Question 3 (50 marks)
Use a long run aggregate demand and aggregate supply model to explain the limitations of the European Central Bank (ECB) in managing a period of stagflation. Discuss recent changes in the stance of the ECBs monetary policy making as a consequence based on readings provided on this module. (25 marks)
Based on readings provided on this module, explain the potential costs and benefits of the Single Market for Europe providing an example in each case. Briefly comment on whether you believe Ireland has gained or lost overall due to entry into the Single Market. (25 marks)
