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Cfi 313: Public Finance Question Paper

Cfi 313: Public Finance

Course:Bachelor Of Commerce

Institution: Catholic University Of Eastern Africa question papers

Exam Year:2014

THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
A. M. E. C. E. A
MAIN EXAMINATION
MAY-JULY 2014 TRIMESTER
FACULTY OF COMMERCE
DEPARTMENT OF ACCOUNTING AND FINANCE
CFI 313: PUBLIC FINANCE

Duration 2 hrs
Instructions: Answer question ONE and any other TWO questions.
Q1.
a) The Kenya government recently banned night travel for public service vehicles in order to reduce the ever increasing fatal road accidents. Assume you are a major transporter, what would be your reaction to this government policy change if you subscribe to:
i. Organic view of government (2 marks)
ii. Mechanistic view of government (2 marks)
b) State and explain the government budgetary objectives. (10 marks)
c) Discuss the principles of cannons of taxation. (10 marks)
d) Citing Kenyan examples, discuss the importance of privatization of parastatals or government corporations. (6 marks)
Q2.
a) Define the term externality, briefly describe with examples three types of externalities. (8 marks)
b) Explain the various mechanisms that can be applied to reduce negative externalities. (12 marks)
Q3.
a) Explain the role of development expenditure in a country. (10 marks)
b) There has been a phenomenon increase in public expenditure over the years. Explain ways in which governments could reduce public expenditure. (10 marks)
Q4.
a) Define the term public deb. Explain the types of debts in a country. (10 marks)
b) Explain the need for increased government borrowing on an economy. (10 marks)
*END*

Cfi 313: Public Finance Question Paper

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