Public Finance (ECOM3104)
Faculty of Economics and Management Science (FEMS)
Semester: Resit
Level: 300
Year: 2017
Section A; COST ANALYSIS
PART ONE (35 marks)
Question one
a) Define:
- Efficiency
- Equity
b) What are the challenges for policy design in public finance?
c) Give two examples of public goods
PART TWO (35 marks)
Question two
a) Explain the difference between positive and negative externalities using illustrations?(8 marks)
b) Make a critical appraisal of the similarity and difference between a public good and an
externality. (7 marks)
c) Critically appraise the tax system of Cameroon based on the cannons of taxation. (10 marks)
Questions three
Study the following fixed budget size projects and assume that the government has 1,500FCFA
to spend:
Project 1 2 3 4 5 6 7 8 9 10
Cost
(FCFA)
200 150 250 300 450 500 125 350 650 500
Benefit 250 175 225 375 535 500 160 500 780 585
Which project should be selected for execution if the government uses?
a) The net benefit-cost ratio analysis
b) The net benefit analysis
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
Resit Course: Public Finance: ECON307
Credit Value:
Course Lecturers:
Time: Course Status: Date:
Venue: Instruction:
www.schoolfaqs.net
