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Subject:- Public finance

B.Com. Year -II
Pre University Test
TIME: 3 Hour MM: 100
This paper is divided into four sectios-A,B,C,D.E Section – A (Short Answer Questions) contain one question of
ten parts requiring short answer. All these parts are compulsory. Section B, C, D and E (descriptive Answer
Questions) each contains two questions. Attempt one questions from each section. Answer must be descriptive.

Section A- Short Answer Question (4X10=40 Marks)

1. Explain Meaning & Scope of Public Finance

2. Differentiate between Public goods vs. Private goods

3. Define Deficit Financing & Importance for economic development

4. Discuss Main Sources of Public Revenue

5. Define Federal Finance & what the problems of federal finance.

6. Discuss Roles of Public Finance in Economic Development

7. Explain Wiseman-peacock hypothesis,

8. Explain Progressive, proportional & Regressive Taxes, Value added tax

9. Define Finance Commission & its roles

10 Explain Wagner's views on increasing state activities

Section-B, C, D and E (Descriptive Answer Questions)(15X4=60 Marks)

Each section contains two questions. Attempt one question from each section. Each question carries 10 marks.
Answer must be descriptive.

Section B

11. Explain Principle of Maximum Social Advantage,


12. Explain Public Budget, Techniques of Budgeting (ZBB PBB)

Section C

13 Explain Need, Sources and repayment of Public Debts


14) Effects of Public debt on – Money Supply, Economic Growth and Economic Stability
Section D

15 Explain Principles of efficient division of financial resources between Central and States


16 Explain Impact, shifting, incidence and effects of taxation

Section E

17 Explain Classification, merits and demerits of direct and indirect taxes


18 Explain Classification and Cannons of Public Expenditure