Sunday, April 30, 2017

Dibrugarh University (BA - 4th Semester) Question Papers - Economics Major 2 (May' 2013)

Course: 402
(Public Economics)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions

1. Choose the most appropriate answer of the following: 1x8=8
  1. Marginal cost of a pure public good is
  1. Zero or close to zero.
  2. One.
  3. Very high.
  4. Equal to price.
  1. The most important objective of public finance operations in developing countries is
  1. To correct cyclical fluctuations in the economy.
  2. To correct depressionary trend.
  3. To accelerate capital formation.
  4. All of the above.
  1. If the elasticity of supply and elasticity of demand are equal, the incidence of a tax on buyer will be
  1. > 50% of the tax.
  2. < 5-% of the tax.
  3. 50% of the tax.
  4. None of the above.
  1. If taxes are levied according to the ability to pay theory, it leads to
  1. Proportional taxes.
  2. Progressive taxes.
  3. Regressive taxes.
  4. Equal amount of tax on all persons.
  1. According to Peacock-Wiseman hypothesis, the movement from the older level of expenditure and taxation to a new and higher level is
  1. Displacement effect.
  2. Inspection effect.
  3. Concentration effect.
  4. Critical limit hypothesis.
  1. External debt is repaid through export which is often termed as ‘un-required export’. This is called
  1. Direct money burden.
  2. Indirect money burden.
  3. Direct real burden.
  4. Indirect real burden.
  1. Treasury bills are examples of
  1. Tax revenue.
  2. Short-term public debt.
  3. Costs incurred during parliamentary session.
  4. None of the above.
  1. ‘No profit no loss’ theory of public utilities was put forth by
  1. Hotelling and Dalton.
  2. Fabians and Lewis.
  3. Taylor and Musgrave.
  4. V. K. R. V. Rao and Mehta.
2. Write short notes on/Answer any four of the following (within 150 words each): 4x4=16
  1. Role of public sector in market economy.
  2. “The best system of taxation is one which has the best or the least bad economic effects.” Elaborate the statement.
  3. Goods and services tax.
  4. Control of public expenditure.
  5. Public debt management policy.
  6. Role of public enterprises in less-development countries.
Answer the following questions (within 500 words each):
3. (a) Define merit goods, mixed goods and club goods with examples. Explain the differences between public goods and private goods. 6+5=11
(b) Explain the principle of maximum social advantage. What difficulties do arise in following this principle in actual practice? 7+4=11
4. (a) Analyze the subjective and objective approaches to ‘ability to pay’ in imposing taxes. 7+5=12
(b) Analyze how the incidence of a tax on a commodity is influenced by elasticity’s of demand and supply. 12
5. (a) Examine the role of public expenditure as an instrument of growth and stabilization. 6+5=11
(b) Discuss the essence of Peacock-Wiseman hypothesis. 11
6. (a) Examine critically the economic effects of public debt. 11
(b) Explain the nature of the burden of internal public debt. Do you think that external public debt is more burdensome? 8+3=11
7. (a) State the meaning of public enterprises and public utilities. Discuss the price policy of public enterprises. 4+7=11
(b) State different forms of public enterprise. Critically explain the theory of making profit. 4+7=11