M.A. DEGREE EXAMINATION, APRIL 2018
Second Semester
Economics
PUBLIC ECONOMICS
(CBCS 2017 onwards)
Time 3 Hours Maximum 75 Marks
Section A (10 x 2 20)
Answer all the questions.
1. What is meant by Capitalist Economy'?
2. Define merit goods.
3. Define Tax.
4. Give the meaning of VAT.
5. Define public expenditure.
6. What is welfare judgment'?
7. What is meant by government borrowing'?
8. What is meant by deficit financing?
9. What is meant by fiscal policy?
10. Define zero base budget.
Sub. Code
7MEC2C3
AFS-0502
2
Sp 5
Section B x 5 25)
Answer all the questions, choosing either or
11. Explain the problem faced by the government in
allocating resources.
Or
Examine the need for the provision of public goods.
12. Explain the ability to pay theory of taxation.
Or
List out the factors determining tax capacity.
13. How to control the public expenditure — Explain.
Or
Explain the Peacok model.
14. State the different classification of public debt.
Or
What is debt management? Explain the various
methods of debt management.
15. Explain the concept of performance budget.
Or
Explain the budgetary deficits and its implications.
Section C x 10 30)
Answer any three questions.
16. Analyse government's role in different economic systems.
17. Evaluate the Bower and Lindal models of taxation.
AFS-0502
3
Sp 5
18. Discuss the causes for increase in public expenditure in
India and its impacts.
19. Public borrowing has become an internal part of economic
development Discuss.
20. Examine the significance of fiscal policy to attain growth
with stability in India.
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