Model Institute of Science and Technology (MIST)

Dept. of Business Administration

2nd year 3rd Semester
1st Mid Term Exam - 2015
Course Title & Code: Public Finance

Time: 2 hours

Full Marks: 50

[N.B.- The figures in the right margin indicate full marks. All parts (a, b, c) of a question must be answered sequentially]

Part A Short Question

(Answer any four questions)
Marks- 5 4 = 20

1.

(a)

What is the meaning of public finance?

(b)

Briefly describe the subject matter of public finance.

Mark
2s
3

2.

Explain different types of tax basis with examples.

3.

(a)

What is free rider problem?

(b)

How can you solve the free rider problem or inefficiency problem in public goods?

4.

Explain the principles of taxation.

5.

(a)

What are the basic parameters of global efficiency?

(b)
(a)

What are the actions governments can pursue to ensure social optimality?
Differentiate between organic and mechanistic view of government.

(b)

What criteria should be used for the right mix of public and private provision?

6.

Part B Broad Question

(Answer any three questions)
Marks- 10 3 = 30

7.

8.

9.

(a) What do you mean by pure public goods?

(b) Do you think national defense is a pure public goods? Show your argument I favor of

your answer.
(a) Difference between Merit goods and Public goods.

(b) How do we consider these two things in the context of Bangladesh? Briefly discuss.

(a) Tax is compulsory payment of a person to the government defray the expenses

incurred in the common interest of all, without reference to special benefit.Explain.

(b) Define Pareto Efficiency.Explain graphically Pareto Efficiency with Edgeworth Box

Diagram.
10. (a) What do you mean by public goods? What are the essential characteristics of a public

goods?
(b) Mention the impact of direct taxes and indirect taxes on tax-payers.

11. (a) Explain the concept of efficiency and optimality in resources.

(b) Which factors are to be considered in the allocation decision of resources?

Best of
Luck........

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