[Date]Possible Exam Questions
Course Code: PUB 3705
Briefly discuss the various abilities (types of know-how) that are necessary for
the proper management of public money.
a)Ideological know-how
-It is the knowledge of the tenets of democracy as they apply to public
financial management.
b)Regulatory know-how
-It means the knowledge of legislation and policy;
-Knowledge of facts regarding laws and regulations, and policy and
skills in reading, interpreting, applying and in some cases, drafting it.
-E.g. PFMA, Treasury Regulations and etc.
c)Financial know-how
-The need for proper planning, budgeting, accounting, reporting and
control.
d)Bureaucratic know-how
-It is necessary for networking, or using our contacts, and advocacy, or
promoting our divisions.
e)Management know-how
The general management thinking is:
-Understand the context;
-Work hard;
-Focus on people;
-Listen well;
-Accept responsibility;
-Take time to think;
-Think again Explain the difference between maximise and optimise.
-Optimising is the process of finding the best balance between quantities or
other factors within certain limitations.
-E.g. in allocating money to various departments within an expenditure budget
with a fixed total.
MNP 3716 – Assignment 02: Student Number: 33356629 1 [Date]-Maximising is the process of making quantities as large as possible.
-E.g. pursuing profitability in business.
Distinguish between the public and private spheres in according to the way in
which each sphere deals with money. P 7 Chap 1
The private sector is the totality of all entities falling outside the boundaries of the
diagram and consists of households, NGOs, clubs and firms.
Public Sector Private Sector
Public sector render services to the
public e.g. public entitiesPrivate sector makes profit e.g. firms
Service to the populace is the main
measure of successProfit is allowed as a measure of
success
Management focuses on planning,
control and evaluation of performance.Management focuses on planning,
control and evaluation of profitability.
Discuss the differences between the public and the private sector that are
relevant to financial management. P 7
Define the People. In what sense is it an abstract concept?
-People means the enduring society that underlies the manifest structures of
the state. It consist of generations, races, communities and classes.
Discuss the ownership of public money.
-The owners of public money are the People;
-It belongs to the community of citizens in a state;
-Every member of the state owns, a single share in public money;
-The legislature makes the allocation of the benefits of public money.
Explain the concept externality and indicate why this concept is important for
the public manager. P29
MNP 3716 – Assignment 02: Student Number: 33356629 2 [Date]-An externality is an effect of a transaction on a party that was not involved in
the transaction.
-E.g. -It provides a criterium for decision making in certain cases where it is
uncertain whether a service should be funded by public money or not. -Transactions with positive externalities are often worth subsidising.
Distinguish between private, collective and quasi-collective services and show
why a public manager and a member of a government should be able to apply
this distinction. P 29
Private Collective Quasi-collective
Characterised as private goods Share characteristics of public
goodsHave characteristics of both
collective and private
Are apportionable They are non apportionable Consumers of these services
are subsidised by the state
Are often exhaustible Are sometimes inexhaustible E.g. Education, Are bought per unit Are not provided with exchange
of taxes
Are not naturally supplied by a
monopolyAre often monopolistic
Are exclusive – those who do not
pay are excluded from their
consumptionAre non exclusive
Use examples to distinguish between outputs and outcomes. P 32
Output is a measurable result of the administrative process in the form of service or
goods.
E.g. Outcome is a measurable positive change in the well-being of the clients of the
administrative process or the prevention of a threat to their well-being.
E.g, What is meant by the following terms: “economy”, “effectiveness”,
“efficiency”, “appropriateness”? In your explanation compare them with one
another
a)Economy – acquiring the necessary resources to carry out an activity at the
least cost;
MNP 3716 – Assignment 02: Student Number: 33356629 3
Course Code: PUB 3705
Briefly discuss the various abilities (types of know-how) that are necessary for
the proper management of public money.
a)Ideological know-how
-It is the knowledge of the tenets of democracy as they apply to public
financial management.
b)Regulatory know-how
-It means the knowledge of legislation and policy;
-Knowledge of facts regarding laws and regulations, and policy and
skills in reading, interpreting, applying and in some cases, drafting it.
-E.g. PFMA, Treasury Regulations and etc.
c)Financial know-how
-The need for proper planning, budgeting, accounting, reporting and
control.
d)Bureaucratic know-how
-It is necessary for networking, or using our contacts, and advocacy, or
promoting our divisions.
e)Management know-how
The general management thinking is:
-Understand the context;
-Work hard;
-Focus on people;
-Listen well;
-Accept responsibility;
-Take time to think;
-Think again Explain the difference between maximise and optimise.
-Optimising is the process of finding the best balance between quantities or
other factors within certain limitations.
-E.g. in allocating money to various departments within an expenditure budget
with a fixed total.
MNP 3716 – Assignment 02: Student Number: 33356629 1 [Date]-Maximising is the process of making quantities as large as possible.
-E.g. pursuing profitability in business.
Distinguish between the public and private spheres in according to the way in
which each sphere deals with money. P 7 Chap 1
The private sector is the totality of all entities falling outside the boundaries of the
diagram and consists of households, NGOs, clubs and firms.
Public Sector Private Sector
Public sector render services to the
public e.g. public entitiesPrivate sector makes profit e.g. firms
Service to the populace is the main
measure of successProfit is allowed as a measure of
success
Management focuses on planning,
control and evaluation of performance.Management focuses on planning,
control and evaluation of profitability.
Discuss the differences between the public and the private sector that are
relevant to financial management. P 7
Define the People. In what sense is it an abstract concept?
-People means the enduring society that underlies the manifest structures of
the state. It consist of generations, races, communities and classes.
Discuss the ownership of public money.
-The owners of public money are the People;
-It belongs to the community of citizens in a state;
-Every member of the state owns, a single share in public money;
-The legislature makes the allocation of the benefits of public money.
Explain the concept externality and indicate why this concept is important for
the public manager. P29
MNP 3716 – Assignment 02: Student Number: 33356629 2 [Date]-An externality is an effect of a transaction on a party that was not involved in
the transaction.
-E.g. -It provides a criterium for decision making in certain cases where it is
uncertain whether a service should be funded by public money or not. -Transactions with positive externalities are often worth subsidising.
Distinguish between private, collective and quasi-collective services and show
why a public manager and a member of a government should be able to apply
this distinction. P 29
Private Collective Quasi-collective
Characterised as private goods Share characteristics of public
goodsHave characteristics of both
collective and private
Are apportionable They are non apportionable Consumers of these services
are subsidised by the state
Are often exhaustible Are sometimes inexhaustible E.g. Education, Are bought per unit Are not provided with exchange
of taxes
Are not naturally supplied by a
monopolyAre often monopolistic
Are exclusive – those who do not
pay are excluded from their
consumptionAre non exclusive
Use examples to distinguish between outputs and outcomes. P 32
Output is a measurable result of the administrative process in the form of service or
goods.
E.g. Outcome is a measurable positive change in the well-being of the clients of the
administrative process or the prevention of a threat to their well-being.
E.g, What is meant by the following terms: “economy”, “effectiveness”,
“efficiency”, “appropriateness”? In your explanation compare them with one
another
a)Economy – acquiring the necessary resources to carry out an activity at the
least cost;
MNP 3716 – Assignment 02: Student Number: 33356629 3
