QUESTION ONE

a) Describe Utilitarianism in the context of decision making for public interest (3 marks)

b) Explain the legal framework guiding expenditure for the National Government in Kenya (3 marks)

QUESTION TWO

a) Describe the problem of externalities in the context of economic transactions in public finance (2 marks)

b) Describe the main difference between a public good and a semi-public good (2 marks)

(Total =10 marks)