107年 - 107 國立臺北大學_日間學士班暨進修學士班轉學生招生考試試題_財政學系日間學士班3年級暨進修學士班3年級：財政學#147750

a. Analyze how a free market can achieve Pareto efficiency. (15%)

b. Analyze the second fundamental theorem of welfare economics. (10%)

a. Analyze *public* health insurance with the lump-sum principle model.(8%)

b. Analyze *private* health insurance in relation to adverse selection.(8%)

c. Do you agree the above statement?(9%)

Question 3
Analyze a case with the cost-benefit approach. (10%) List advantages and disadvantages of the analysis and evaluate whether you should use the approach in this case. (15%)

Question 4 a. Explain Arrow's impossibility theorem. (13%)

b. "Since the theorem implies that the results of voting could be arbitrary, public policies should not be decided through democracy." Do you agree this statement? (12%)