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PFN712S- PUBLIC FINANCE- 2ND OPP- JUNE 2023 |
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n Am I BI A un IVE RS ITY
OF SCIEnCE Ano TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: BACHELOR OF ECONOMICS
QUALIFICATION CODE: 07BECO
LEVEL: 7
COURSE CODE: PFN712S
COURSE NAME: PUBLICFINANCE
SESSION: JULY2023
DURATION: 3 HOURS
PAPER: THEORY
MARKS: 100
2ND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S)
MR. MALLY LIKUKELA
MODERATOR:
MR. M MBAHA
INSTRUCTIONS
1. Answer ALLthe questions.
2. Read all the questions carefully before answering.
3. Number the answers clearly
THIS QUESTION PAPER CONSISTS OF _S_ PAGES (Including this front page)
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iSECTIONA: MULTIPLECHOICE: , ,
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10 MARKS;
1. The Minister of Finance tables the national budget to Parliament for:
a. Implementation
b. Approval
c. Filling
d. Endorsement
2. Hon. lpumbu Shiimi is the Minister of:
a. Finance
b. Finance and Public Enterprise
c. Budgeting and Planning
d. All of the above
3. A public road built by the Ministry of Transport is an:
a. Output of the Ministry
b. Outcome of the Ministry
c. A product of the Ministry
d. A program of the Ministry
4. The National budget is approved by:
a. The office of the President
b. The Parliament
c. The Ministry of Finance
d. The Government of Namibia
5. The main budget document that provides an account of how line ministries have
implemented the budget is
a. The state of the Nation address
b. The Accountability Report
c. The Medium-Term Expenditure Framework (MTEF}
d. The Budget Statement
6. The following is not one of the purpose of taxation
a. Reprising
b. Redistribution
c. Representation
d. Republication
7. Taxes that are are collected from someone other than the person ostensibly
responsible for paying the taxes are known as:
a. Direct taxes
b. Indirect taxes
c. External taxes
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d. Domestic taxes
8. The process of passing the burden of the tax to others IS CALLED:
a. Tax shifting
b. Tax evasion
c. Tax erosion
d. All of the above
9. Statutory incidence
a. Indicates who is legally responsible for the tax and legal responsibility
implies the obligation to collect and remit the tax to government.
b. Is the change in the distribution of private real income brought about by
the tax.
c. Is an economic term for understanding the division of a tax burden
between stakeholders, such as buyers and sellers or producers and
consumers.
d. All of the above
10. Private benefit is:
a. The increase in consumer happiness from the consumption of one more
unit of a good or service.
b. The increase in a firm's costs when it produces one more unit of a good or
service.
c. The total cost from the production of a good, including both the private
cost and any production externality.
d. A and c
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1. Edgeworth Box is an analytical device used to model welfare economic theory.
2. Lack of data does not prevent policymakers from assessing the potential
impact of major changes to the tax system.
3. The Ministry of Finance in Namibia is the nation's main tax collecting
authority.
4. Externalities (third parties effects) can never be positive.
5. There are no gains from trade or reallocation when there is Pareto Efficient.
6. Tax reforms are not effective in stabilizing the economy.
7. Namibia implements a regressive tax regime.
8. The burden of the tax equals the tax revenue plus the deadweight loss.
9. Perverse incentives is the tendency for spenders to have incentive to use all
the resources provided them; fearing that if they don't, they risk cuts in the
next budget.
10. Namibia has never experienced a budget deficit since independence.
[SSMARKS]J
QUESTION 1
a. Elaborate upon the following terms:
lSMARKS
i. Statutory incidence of taxes
[5]
ii. Economic incidence of taxes
[5]
iii. Budget calendar
[5]
QUESTION 2
[lOMARKS]
i.
What is a national budget
[2 Marks]
ii.
Budget cycle in Namibia has four phases, list and describe them in detail
[8 Marks]
QUESTION 3
Calculate VAT@ 20% in N$.
Producer
Purchase Sale (N$)
(N$)
Farmer
0
200
Miller
200
350
Baker
350
475
Value
(N$)
200
150
125
[lOMARKS]
added VAT@ 20% rate (N$)
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1:Grocer 450
500
50
Total
1,025
1,525
500
QUESTION 3
Discussfour principles of tax incidence.
[20MARKS]
QUESTION 1
With the help of a diagram, discuss the deadweight loss of taxation
2SMARKS
[lOMARKS]
QUESTION 2
[1SMARKS]
Provide a detailed description of the important steps involved in the budgeting process
in Namibia.
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