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1
The principal–agent problem in public administration primarily arises because
A. agents (bureaucrats) often have more information than principals (political officials) and may pursue divergent interests
B. principals always have complete information about administrative processes
C. agents are always perfectly aligned with the public interest
D. principals directly control every administrative decision
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The principal–agent problem stems from information asymmetry and differing objectives between principals and agents, enabling agents to act in their own interest.
2
Which of the following best describes a core feature of New Public Management (NPM)?
A. Re-emphasis on hierarchical control and strict rule-following
B. Adoption of market-oriented mechanisms, performance measurement and managerial autonomy
C. Complete abolition of public sector contracting and outsourcing
D. Subordination of efficiency to bureaucratic procedure
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NPM emphasizes market mechanisms, performance measurement, and managerial autonomy to improve efficiency and service delivery.
3
Among forms of decentralization, which grants the greatest degree of political and administrative autonomy to subordinate levels of government?
A. Deconcentration
B. Delegation
C. Devolution
D. Centralization
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Devolution transfers powers and responsibilities to local governments with significant political and administrative autonomy, unlike deconcentration or delegation.
4
Performance budgeting is best defined as a budgeting approach that
A. allocates funds solely on historical expenditures without regard to outcomes
B. focuses only on inputs rather than results
C. eliminates the need for any accountability mechanisms
D. links resource allocation to expected results and measurable performance indicators
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Performance budgeting ties resource allocations to expected outcomes and measurable indicators to improve accountability and effectiveness.
5
Which characteristic most closely reflects Max Weber’s ideal-type bureaucracy?
A. Impersonality and rule-bound decision-making based on formal rules
B. Personalized leadership and ad hoc decision-making
C. Appointment based on kinship or favoritism
D. Absence of hierarchical authority
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Weber’s bureaucracy is characterized by impersonal, rule-based procedures and merit-based authority to ensure predictable administration.
6
Public choice theory in the study of public administration primarily assumes that
A. bureaucrats are perfectly altruistic and always place public interest first
B. individuals in public institutions act largely as self-interested agents responding to incentives
C. collective decision-making always yields socially optimal outcomes
D. administrative decisions are unaffected by institutional incentives
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Public choice theory applies economic assumptions of self-interest and incentives to public actors, explaining behavior as responses to those incentives.
7
The principle of subsidiarity in public administration means that
A. central government should retain all decision-making powers
B. decisions should be made only by international bodies
C. public functions should be performed by the lowest level competent to do them effectively
D. private actors should always replace public institutions
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Subsidiarity holds that responsibilities should be assigned to the lowest competent level to enhance responsiveness and efficiency.
8
Policy implementation differs from policy formulation in that implementation
A. is primarily concerned with agenda-setting and problem definition
B. takes place before policies are adopted by policymakers
C. is a purely theoretical exercise without administrative involvement
D. involves translating policy decisions into concrete actions through administrative machinery
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Implementation is the administrative process of putting adopted policies into action using resources, procedures and personnel.
9
Which institution is primarily responsible for ensuring financial accountability of government expenditures?
A. Supreme Audit Institution or Auditor-General (external audit)
B. Political parties in opposition
C. Administrative ministries conducting internal reviews only
D. Street-level bureaucrats implementing services
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Supreme Audit Institutions conduct independent external audits to verify legality and propriety of government financial transactions, ensuring financial accountability.
10
One significant advantage of e‑governance in public administration is that it
A. eliminates the need for public managers
B. increases transparency and reduces opportunities for corruption by improving access to information
C. guarantees equal digital access for all citizens regardless of capacity
D. removes the requirement for accountability mechanisms
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E-governance enhances transparency and access to information, which can reduce corruption and improve citizen oversight of public services.