M.A. (Semester III) (CBCS) Examination Nov/Dec-2018
Economics
PUBLIC ECONOMICS
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose correct alternative: 14
Public finance mainly dealt with
Private revenue and expenditure
Government revenue and expenditure
Government scheme
Government's ways and means of credit
In the economy government is a sole authority who takes all
decisions.
Mixed Economy Capitalistic Economy
Socialistic Economy Feudal Economy
The goods which can effects on welfare of the people and also can apply
the principle of aversion in consumption, called as
Public Goods Private Goods
Merit Goods None of the above
The principle of is indicated those who are not able to pay price
also can consume the goods.
Aversion Non Aversion
Divisibility All the above
According to Adam Smith, the Government has to perform the functions of

Regulate the Price Mechanism Maintain Law and Order
Defense from foreign invasion All the above
Private goods are those which has the quality of
Aversion Perfect Divisibility
Increasing Cost Condition All the above
Market failure can occur when
Monopoly power exists in the market
Cost is decreasing
Externalities are there
All of the above
According to principle the burden of taxation must be in the
proportion to the benefit received by a person from the expenditure made
by the Government.
Benefit Ability to pay
Equity All of the above
is the compulsory payment to the government made by the
people without expecting any returns.
Tax Credit
Investment Dividend
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SLR-HS-10
10) An economic theory of democracy is given by the
Kenneth Arrow Anthony Downs
Adam Smith David Ricardo
11) Laffer curve is theoretical representation of the relationship between
Revenue raised by taxation and all possible rates of taxation
Revenue raised by direct taxed and direct tax rates
Revenue raised by indirect taxes and direct tax rates
Expenditure of the government and all possible tax rates
12) The first who paid taxes to the government and bear the burden of tax is
known as
Impact of tax Incidence of tax
Transition of tax None of the above
13) is theory given by the Adolf Wagner.
Increasing state Liability Increasing state revenue
Increasing state activity Increasing state deficit
14) Private cost External cost
Social cost Marginal cost
Average cost Total cost
Q.2 Write short notes (any four) 16
Club Goods
Features of public goods
Exclusion Principle
Wealth tax
Budget
Finance Commission
Q.3 Write short answers (any two) 12
Elaborate role of government as an agent of economic growth.
Explain alternative concepts of incidence of taxation.
Explain Wiseman-Peacock hypothesis
Explain the cannon of taxation
Q.4 Answer any one question 14
Explain the role of government in mixed economy.
Explain the Wagner's law of increasing state activities.
Q.5 Explain the ability to pay approach of taxation. 14