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Public Finance(Buss 346) Question Paper

Public Finance(Buss 346) 

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2010



TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions

QUESTION 1
a) Explain the meaning of the following terms uses in public finance
i. Public finance (3 marks)
ii. Public debt (3 marks)
iii. Public expenditure (3 marks)
iv. Budgeting (3 marks)
v. Impact and incidence of tax (3 marks)
b) Discuss FIVE differences between private goods and public goods (5 marks)
c) Using a diagram explain the principles of maximum social advantage (5marks)
d) State five differences between public finance and private finance (5marks)

QUESTION 2
a) State and explain FOUR externalities created through consumption of public good (8 marks)
b) Identify SIX reasons why Kenyan government imposes tax. (12marks)

QUESTION 3
a) The direct tax system has more harm than good in accountings economy. Discuss (10marks)
b) State and explain FIVE types of public debts. (10 marks)

QUESTION 4
a) For public expenditure to be incurred certain considerations are necessary. Enumerate FIVE such considerations (10 marks)
b) Explain FIVE ways through which National budgets promotes economic development (10 marks)






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