Attempt four of the ve questions Question 1 (a) Recently. the Government of Uganda through public-private partnership completed the Entebbe Express Highway. Unlike other highways, the use of the Entebbe express shall attract a user fee. Required: Explain why the Entebbe Express Highway may lead to more efficient utilisation than other free-to-use highways. (6 marks) (b) Distinguish between the following terms as used in managerial economics: (i) public goods and private goods. (4 marks) (ii) marginal cost and variable cost. (4 marks) (iii) aggregate demand and aggregate supply. (4 marks) (c) Explain the factors that should be the major focus of government of Uganda in improving the welfare of its citizens. (7 marks) (Total 25 marks) Question 2 Mr. Augustine Samanyana runs a bakery producing sawa bread. The demand for Sawa Bread has been increasing overtime due to its good taste. Augustine has consulted you as a public finance expert to advise him on the different demand forecasting methods for his bread to avoid stock-outs. Required: (a) (b) (0) Explain to Augustine the following demand forecasting methods: (i) sample survey method. (3 marks) (ii) statistical method. (3 marks) (iii) barometric method. (3 marks) (iv) trend proiection method. (3 marks) Describe the stages involved in the end-use method of demand forecasting. (8 marks) Considering sawa bread as a normal good. and with illustration, explain what happens to the demand for the bread (sawa) when its price increases. (5 marks) (Total 25 marks) Question 3 The Uganda National Budget 2018/19 FY suggested a number of tax reforms including increase of excise duty on bank charges and mobile money transfers. Required: (a) Using appropriate examples, demonstrate how such tax increases may be used by government to achieve: (i) economic growth. (6 marks) (ii) income redistribution. (6 marks) (ii) poverty reduction. (6 marks) (b) Explain the effects of a tax increase on consumer behaviour. (7 marks) (Total 25 marks) Question 4 Suppose that you have been contracted by government of Uganda to provide critical advice on public finance reform policy in order to meet the obiective of allocation. distribution and stabilisation of the economy. Required: (a) Advise the government on public finance reform policy to achieve the following: (i) allocation. (3 marks) (ii) distribution. (3 marks) (ii) stabilisation. (3 marks) (b) Describe the role of government in economic development. (8 marks) (c) Discuss the ways in which fiscal instruments may be used to stimulate economic growth. (8 marks) (Total 25 marks) Question 5 Uganda's National Development Plan II aims at lifting the incomes of the poor Ugandans and closing the income gap between the rich and the poor. Some economists criticised the recent one per cent tax on mobile money transfers as being a progressive tax. They argue that much as government is in need of revenue it may instead widen the income gap. Required: (a) Discuss the effect of a progressive tax on consumer behaviour. (6 marks) (a) Explain possible sources government revenues. (10 marks) (b) Discuss principles of a good tax system. (9 marks) (Total 25 marks)