Section A

1) Derive the optimality conditions for the supply of healthcare services in the presence of ‘quality variable’.

2) Discuss the conditions under which a mining firm can realise maximum present value of its rent ‘while extracting with constant marginal cost’?

Section B

3) Outline the ‘theories of resource scarcity’. State the reasons for which Bowers (1977) rejected the ‘scarcity hypothesis’.

4) Distinguish between the concepts of ‘Hicksian-sustainability’ and ‘Hartwick-Solow sustainability’.

5) Explain the issues involved in the management of ‘global commons’.

6) Define the concepts of ‘asymmetric information’, ‘adverse selection’ and ‘moral hazard’ in the context of health insurance market.

7) Indicate the efficacy of ‘informal regulations’ on environmental pollution.