Get premium membership and access revision papers, questions with answers as well as video lessons.

Got a question or eager to learn? Discover limitless learning on WhatsApp now - Start Now!

Public Finance Question Paper

Public Finance

Course:Bachelor Of Commerce In Finance

Institution: Kenyatta University question papers

Exam Year:2007

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2007/2008
DEGREE OF BACHELOR OF COMMERCE
AEC 307: PUBLIC FINANCE
DATE: Monday 6th October, 2007 TIME: 10.00 a.m. – 12.00 noon
INSTRUCTIONS: Answer question 1 and any other two questions.
1. (a) Distinguish between the following terms:
(i) Social good and social bad commodities. (4 marks)
(ii) Tax incidence and Tax effect. (4 marks)
(iii) Income tax and Sale tax (4 marks)
(b) Explain in details the two basic principles that distinguish public
and private goods, giving example in each case. (4 marks)
(c) State the six principles of public expenditure. (6 marks)
(d) State and explain any four factors that determines the public sector
debt requirements. (8 marks)
2. (a) Taxation can be used to eliminate inflationary and unemployment
gaps in an economy. Explain how it can be used to eliminate
unemployment in an economy. (10 marks)
(b) Explain how fiscal policy can be used to bridge the gap between the
rich and poor in an economy. (10 marks)
3. Explain the three fiscal function of the government and give appropriate
policies that can be applied. (20 marks)
2
4. (a) Define the term externality. (20 marks)
(b) Explain the various mechanism that can be applied to correct
positive and negative externalities. (18 marks)
5. (a) Explain any five sources of market failure. (10 marks)
(b) Explain the factors that determine the taxable capacity of a country.
10 marks)

Public Finance Question Paper

More Question Papers

Popular Exams