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Eae 313 Public Finance Question Paper

Eae 313 Public Finance 

Course:Bachelor Of Economics

Institution: Kenyatta University question papers

Exam Year:2012



INSTRUCTIONS
Attempt Question ONE and any other TWO Questions.
Q.1a)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 the advantages of each.(10 marks)
Q.2a)Define the term externality.(4 marks)
b)With the help of a diagram explain how optima allocation of public good is achieved.(12 marks)
Q.4 Distinguish between the following
i)Internal and external debts.(3 marks)
ii)Productive and unproductive debt(3 marks)
iii)Redeemable and irredeemable debts(3 marks)
iv)Long term and short term debt(3 marks)
Q.5
Using a case study of an irrigation scheme identify the following
i)Direct benefits and costs.(4 mark)
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 benefit sand costs of a social project.(4 marks)
c)Explain the differences between social and private project evaluation.(4marks)




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