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Eae 313:Public Finance Question Paper

Eae 313:Public Finance

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2011

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS OF 2011/2012
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE

EAE 313:PUBLIC FINANCE
DATE:TUESDAY,DECEMBER 2011
INSTRUCTIONS
Answer Question ONE(Compulsory) and Any other TWO Questions.

Q1.(a)There are four budgetary policies of the government.State them and explain how each of
them can be achieved using various fiscal policies. (12 marks)
(b)Explain how stabilization and distribution objectives conflict one with another.(4
marks)
(c)State and explain the principles of government expenditure.(4 marks)
(d)Distinguish between benefit and ability to pay theories of taxation ,giving advantages
of each. (10 marks)
Q2.(a)Define the term externality.(4 marks)
(b)With the help of a diagram,explain how optimal allocation of public goods is
achieved.(12 marks)

Q3.Distinguish between the following
(i)Internal and external debts. (3 marks)
(ii)Productive and unproductive debts.(3 marks)
(iii)Redeemable and irredeemable debts (3 marks)
(iv)Long term and short term debt (3 marks)

Q4. (a) Using a case study of an irrigation scheme,identify the following.
(i)Direct benefits and costs (4 marks)
(ii)Intermediate benefits and costs. (4 marks)
(iii)Tangible benefits and costs. (4 marks)
(b)Explain the mechanisms that can be used to measure non monetary benefits and costs
of a social project. (4 marks)
(c)Explain the difference between social and private project evaluation. (4 marks)

Eae 313:Public Finance Question Paper

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