Download "Economics" Question Paper - IV Public Finance for B.A. /B.Sc. (Hons.) 3rd Year Honours. All Previous years Question Papers.

B.A. /B.Sc. (Hons.) 3rd Year
Economics
Paper-IV: Public Finance

Time Allowed: Three Hours] [Maximum Marks: 90 

Note: Attempt five questions in all. The first question is compulsory. The remaining four questions must be attempted by selecting one question from each Unit. 

I. Attempt any nine short notes in about 25 to 30 words each:

(i) Difference between Public finance and Private finance 

(ii) Problem of 'free riders' in Public Goods

(iii) Public Expenditure as a stabilization measure

(iv) Difference between Direct and Indirect Tax

(v) Comment on Taxable Capacity in India

(vi) Four canons of taxation

(vii) Explain the Debt Trap 

(viii) Fiscal Deficit

(ix) Difference between Public Borrowing and Public Debt 

(x) Meaning of Federal finance 

(xi) Deficit Financing 

(xii) Functional finance.

UNIT-I 

II. What is the rationale for the provision of Public Goods by the government? Is the need for budgetary provision different in case of Merit Goods?

III. Examine the fundamental guiding principle of Public Finance as given by Dalton.

UNIT-II 

IV. What is the difference between Impact and Incidence of taxation? Examine the role of price - elasticity in determining the incidence of taxation.

V. Explain the concept of Equity in taxation. How does 'ability to Pay' theory help in achieving equity?

UNIT III

VI. What is the role of Public Debt in economic development? Also, analyze the burden of public debt.

VII. How is Budget a means of mobilization and canalization of resources? How can it be used in reducing economic inequalities?

UNIT-IV 

VIII. Explain the implications of a Balanced Budget with the help of Balanced Budget Multiplier. Should the government budget always be balanced?

IX. Compare Public Borrowing with Taxation as means of resource mobilization.