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Tbs 402: Public Finance And Policy Question Paper

Tbs 402: Public Finance And Policy

Course:Bachelor Of Education

Institution: South Eastern Kenya University question papers

Exam Year:2015

SOUTH EASTERN KENYA UNIVERSITY
UNIVERSITY EXAMINATIONS 2015/2016

FIRST SEMESTER EXAMINATION FOR THE
DEGREE OF BACHELOR OF EDUCATION

TBS 402: PUBLIC FINANCE AND POLICY

DATE: 18TH AUGUST, 2016 TIME: 11.00-1.00 P.M

Instructions to Candidates

a) Answer Question ONE and any other TWO questions.
b) Begin answering a new question on a separate page on the booklet provided
c) Credit will be given to the clarity of argument and use of local examples.

QUESTION ONE (30 MARKS)

a) Explain five reasons why the government should involve itself in business activities.
(5 marks)
b) Name and explain at least four causes of market failure (8 marks)
c) Explain in detail five distinctions between public goods and private goods(5 marks)

d) Explain at least five canons of a good tax system (5 marks)
e) Explain five reasons why the government would see it necessary to privatize public
corporations (5 marks)
f) Differentiate between non-excludability and non-rivalriness characteristics of public goods? (2 marks)

QUESTION TWO (20MARKS)

a) Name and explain five categories of tax in Kenya (10 marks)
b) Distinguish between tax incidence and tax shifting (4 marks)
c) Name and explain the three types of tax incidence (6 marks)

QUESTION THREE (20 MARKS)

a) Explain the three types of externalities (6 marks)
b) Discuss at least five different ways a country can use to solve externalities(10 marks)
c) Explain four weaknesses of Coarse Theorem as a solution to externalities (4 marks)

QUESTION FOUR (20 MARKS)

a) Write short notes on the following theories of public expenditure (10 marks) i). Organic theory

ii). Ballot box theory iii). Positive theory

v). Optimal level theory

v). Individual choice theory

b) Explain five reasons for the increased growth in public expenditure (10 marks)

QUESTION FIVE (20 MARKS)

a) Explain five roles played by the Treasury of any developing country (10 marks)

b) Define the national budget and explain the three different types of budgets (6 marks)

c) Explain at least three factors upon which the level of production and employment in a

country depends on.(4 marks)

Tbs 402: Public Finance And Policy Question Paper

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