NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF ARTS AND SOCIAL SCIENCES
SEPTEMBER 2020 EXAMINATION

COURSE TITLE:TAXATION AND FISCAL POLICY
COURSE CODE: ECO 440
UNITS: 2
TIME ALLOWED: 2HOURS
INSTRUCTION:ANSWER ANY THREE (3) QUESTIONS. ALL QUESTIONS CARRY EQUAL MARKS

QUESTION ONE
Explain the rationale behind public intervention in economic activity. (23 Marks)

QUESTION TWO
Evaluate the concept of public revenue and what are the sources of financing government activities. (23 Marks)

QUESTION THREE
Highlight the two main reasons of studying public expenditure and explain the causes of increase in public expenditure. (23 Marks)

QUESTION FOUR
a) Use a graphical illustrationto explain the classification of public expenditure. (10 Marks)
b) Give a brief explanatory note on each of the following.
i. Adolph Wagner‘s hypothesis
ii. Peacock - Wiseman hypothesis and
iii. Colin Clark‘s Critical Limit Hypothesis (13 Marks)

QUESTION FIVE
a) Explain the concept of public debt and highlight the reason for government borrowing. (13 Marks)
b) What are the factors that influence lending to the government by financial organizations? (10 Marks)