PUBLIC FINANCE
MULTIPLE
CHOICE QUESTIONS
1.
Scope of public finance includes :
(a) Public
revenue (b) Public debt (c) Public expenditure (d) All of these
2.
Public Authorities Include:
(a) Central
Government (b) State Government (c) Local Government (d) All of these
3.
Which is the main point on the basis of which
public finance can be separated from private finance:
(a) Price
policy (b) Borrowings (c) Secrecy (d) Elasticity in income
4.
The principle of Maximum Social Advantage have
been suggested by
(a) Pigou
(b) Dalton (c) Musgrave (d) Adam Smith
5.
In the following which is the characterstic of
a tax
(a) Compulsory
(b) optional (c) forced (d) nationality
6.
Which is the main objective of a tax:
(a)
Increase in consumption (b) increase in
production (c) Raising public revenue (d) reduction in capital formation
7.
Among the following canons of taxation which
one has been given by Adam Smith:
(a)
Canon of Uniformity (b) Canon of productivity
(c) canon of diversity (d) canon of equity
8.
The Indian tax system is:
(a) Proportional
(b) Progressive (c) Regressive (d) Degressive
9.
The burden of direct taxes is borne by :
(a) Rich
person (b) poor person (c) on whom it is levied (d) none of these
10. Indirect
taxes have an element of :
(a) Equitable
(b) certainity (c) economical (d) encourage honesty
11. Direct
taxes have the element of :
(a) Evasion
(b) convenient (c) progressive (d) economy
12. In
proportional tax system, the rates of tax remain:
(a) Constant
(B) increasing (c) decreasing (d) zero
13. Expenditure
Tax for India was recommended by:
(a) Kaldor
(b) Colin Clarke (c) Adam Smith (d) Adolph Wagnor
14. Corporate
Income tax is the tax levied on:
(a) Corporations
(b) Municipalities (c) Co –operative societies (d) Companies
15. Which
of the following is the major source of revenue in India:
(a) Direct
tax (b) Capital Levy (c) Grants in aid (d) Indirect tax
16. Which
of the following is not a Commodity Tax:
(a) Excise
duty (b) Customs Duty (c) Coporation Tax (d) Octroi
17. A
duty levied on goods when they entering a town
(a) Income
tax (b) Octroi (c) Agricultural tax (d) Professional tax
18. Special
Assessment means:
(a) A
tax on special benefits (b) General tax on all people (c) A periodical tax (d)
Gift tax
19. Non-exclusion
principle is related to:
(a) Private
goods (b) Public goods (c) Merit goods (d) Mixed goods
20. Education
is an example of:
(a) Public
good (b) Merit good (c) Social good (d) Club good
21. Public
Goods are:
(a) Excludable
(b) Non – excludable (c) Marketable (d) All of these
22.
Who is the father of Public Finance:
(a) Dalton
(b) Pigou (c) Smith (d) Musgrave
23. Incidence
of tax means:
(a)
Direct money burden (b) indirect money burden
(c) actual tax burden (d) none of these
24. Which
is the tax shifting
(a)
To bear the tax burden himself (b) to shift
the tax burden on others 9c) to bear some part of the tax himself and shift the
rest on others (d) none of these
25.
The equity principle of taxation was
propounded by: A) Adam Smith B) Dalton C) J.B. Say D) Marshall
26. “The
government which taxes the least is the best”, is the belief of:
A)
Mercantilists B) Physiocrates C) Modern D) Classical
27.
According to Laffer, when the tax rate is 100
per cent , the tax revenuewill be: A) 100% B) 50% C) Zero D) 10%
28.
Incidence of a tax refers to
the--------------burden of tax: A) Initial B) Ultimate C) Intermediate D) None
29.
In the case of regressive tax, the rate of
tax---------------------as income increases: A) increases B)remains constant C)
Decreases D) None
30. Advolorum
duties are levied on:
A)
Length B) Weight C) Utilities D) Value
31. Tax
avoidance is:
A)
Illegitimate B) Legitimate C) Punishable D) None
32. The
VAT was first introduced in:
A)
India B) Britain C) USA D) France
33. Customs
duties are imposed on commodities as they cross:
A)
State boundaries B) District boundaries C) National boundaries D) Muncipal
boundaries
34. Contra-cyclical
fiscal policy was popularised by: A) Adam Smith B) Dalton C) J.B. Say D) Keynes
35.
Deficit financing as a tool of fiscal policy
was suggested by: A) Keynes B) Dalton C) J.B. Say D) Marshall
36. Keynes
popularised:
A)
Monetary policy B) Fiscal Policy C) Income policy D) Price policy
37.
A budget where there is excess of expenditure
over revenue is called: A) Surplus B) Deficit C) Balanced D) Zero-based
38. The
balanced budget principle was advocated by:
A)
Keynesians B) Mercantilists C) Classical school D) Neo-Classical school
39.
Which one of the following is not a tax base?
A) Income B) wealth C) Utility D) Consumption
40. Equals
treated equally in taxation leads to:
A)
Vertical equity B) Real equity C) Horizontal equity D) None
41. Which
one of the following is not a public utility?
A) Electricity
B) Water supply C) Gas service D) Tourism
42. The
largest component of revenue expenditure in India is: A) Pension B) Interest
payments C) Education D) Health
43.
The Classical economists asserted that public
expenditure is: A) Unproductive B) Productive C) stagnant D) All of these
44. Wagner’s
Law is related to:
A)
Public revenue B) Public expenditure C) Public
debt D) Budget
45. The
largest component of revenue expenditure in India is:
A)
Pension B) Interest payments C) Education D)
Health
46. .Adolph Wagner was
a-----------------Economist:
A)
French B) German C) Indian D) American
47. Who
is the exponent of Law of Increasing State Activities?
A)
Dalton B) Pigou C) Smith D) Wagner
48. The
Displacement effect hypothesis was formulated by:
A)
Peacock and Wiseman B) Pigou C) Smith D)
Musgrave
49. The
financial year in India starts from:
A) 1st
January B) 31st March C) 1st April D) 1st July
50. Salaries
and pensions paid by governments are called:
A)
Capital expenditure B) Development expenditure
C) Revenue expenditure D)Plan expenditure
51. The
fiscal deficit excluding the interest liabilities for a year is called as
A)
Revenue deficit B) Capital deficit C) Budget
deficit D) Primary deficit
52. The
FRBM Act was passed in:
A)
1991 B) 2001 C) 2003 D) 2011
53. The
Zero-based budgeting was first adopted in:
A)
India B) France C) Germany D) USA
54. Who
proposed the Zero-based budgeting for the first time:
A)
David Ricardo B) Alfred marshall C) Adam Smith
D) Peter Phyrr
55. Gender
budgeting started in India with the Union budget of:
A)
1991-92 B) 2001-02 C) 2006-07 D) 2010-11
56. Grants
recommended by the Finance Commission are known as:
A)
Plan grants B) Conditional Grants C) Statutory
grants D) Conditional grants
57. Which
one of the following is not a method for redeeming public debt?
A)
Sinking fund B) Capital levy C) Terminal
annuities D)Grants in aid
58. The
Finance Commission in India is appointed by:
A)
President B) Prime Minister C) Chief Minister
D) Finance Minister
59. The
Theory of Maximum Social Advantage was given by:
A)
Marshal B) Dalton C) Musgrave D) Mill
60. Which
of the following is a Statutory Body?
A)
Finance Commission B) Planning Commission C)
State Planning Board D) None of these
61. Author
of ‘General Theory of Employment, Interest and Money’:
A)
Dalton B) Marshal C) Keynes D) Musgrave
62. Functional
Finance concept was introduced by:
A)
Marx and Angels B) Keynes and Lerner C) Dalton
and Pigou D) J.S. Mill
63. Formation
of---------------is the actual method of debt redemption:
A)
Sinking fund B) Capital levy C) Conversion D)
Repudiation
64. Chairman
of the first Finance Commission:
A)
Chadha B) K.C. Neogi C) Santhanam D) Y.V.
Chavan
65. Redemption
of public debt means:
A)
Repayment of debt B) Repayment of FDI C)
Additional borrowing D) Deficit financing
66. The
Annual Account of both the income and expenditure is called:
A)
Plan B) Budget C) Manifesto D)Accounts
67. Equals
treated equally in taxation leads to:
A)
Vertical equity B) Real equity C) Horizontal
equity D) None
68. Modified
Value Added Tax was introduced in India in:
A) 1951
B) 1986 C) 1991 D) 1976
69. Agricultural
Holding Tax was recommended by:
A) Adam
Smith B) K.N. Raj C) Chelliah D) Marshall
70. The
burden of long-term public debt fall on:
A) Present
generation B)Past generation C) Future generation D) All
71. The
Great Depression occurred during:
A) 1919-23
B) 1929-33 C) 1949-53 D) 1901-05
72. Pump
Priming is related with:
A) Monetary
policy B) Income policy C) Price policy D) Fiscal policy
73. Deficit
financing may lead to:
A) Poverty
B) Unemployment C) Inflation D) Deflation
74. The
debts which the government promises to pay off at a specified date are called
A) Irredeemable
debts B) Funded debts C) Redeemable debts D) unfunded debts
75. Short-period
debts are called as:
A) Unfunded
debts B)Funded debts C) Redeemable debts D) None
76. Unfunded
debts are also known as
A) Funded
debts B) Floating debts C) Irredeemable debts D) None
77. Treasury
bills issued by the Government are in the nature of:
A) Funded
debts B) Floating debts C) Irredeemable debts D) None
78. A
tax that can be shifted is called:
A) Direct
tax B) Progressive tax C) Indirect tax D) None
79. Service
tax in India was introduced in:
A) 1991-92
B) 2001-02 C) 2006-07 D) 1994-95
80. The
chairman of the 15th Finance Commission of India is
A)
A.M. Khusro B) K. C. Pant C) N.K. Singh D)
Arun Jaitley
81. The
basic principle of public finance is:
a)
Maximum Social Advanatage b) welfare of the
Govt. c) welfare of the Individual d) all of the above
82. The
finance commission is appointed every : A) 3 years B) 5 years C) 6 years D0 7
years
83. Which
of the following is not a fiscal instrument?
a)
Open market operations b) Public expenditure c) Taxation d) budget
84. Which of the following is a measure of
fiscal policy?
a)
Public expenditure b) C.R.R. c) S.L.R. d)
Bank rate
85. The
First Finance Commission was appointed in the year:
A)
1949 B) 1950 C) 1951 D) 1952
86. Modern
Canons of taxation are propounded by:
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a)Bastable |
b) Adam Smith |
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c) Seligmon |
d) Pigou |
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87. |
In India, personal income tax is levied on
individuals by: |
|
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a) Central Government |
b) State Government |
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c) Local bodies |
d) None of these |
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88. |
Sound tax policy is devised mainly on the
basis of: |
|
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a) Maximum tax revenue |
b) Elastic tax base |
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c ) High income elasticity |
d) High price elasticity |
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89. |
The Kelkar Proposals are concerned with: |
|
a) Recommendations
for re4forms in the power sector
b) Recommendations
for tax reforms
c) Guidelines
for the privatization of public sector undertakings
d) None
of the above
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90. |
In the case of direct tax, impact and
incidence are on: |
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a) Different person |
b) Same person |
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c) Sellers |
d) None of these |
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91. |
The direct violation of Tax law is called: |
|||
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a) Tax evasion |
b) Tax avoidance |
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c) Tax Rebate |
d) None of these |
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92. |
The final resting place of the burden of tax
is called: |
|||
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a) Tax avoidance |
b) Tax evasion |
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c) Impact |
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d) Incidence |
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93. |
Fiscal policy is the policy of: |
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a) RBI |
b) NABARD |
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c) Government |
d) All the above |
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94. |
The principle of judging fiscal measures by
the way they work is called: |
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a) Personal Finance |
b) Public Finance |
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c) Functional Finance |
d) Local Finance |
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95. |
When individuals with
unequal tax paying ability should be taxed unequally in order to |
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equal sacrifice is called: |
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a) Horizontal equity |
b) Vertical Equity |
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c) Tax paying ability |
d) None of these |
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96. |
Elastic revenue response to marginal tax
rate reductions is called: |
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a) Marginal tax curve |
b) Functional curve |
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c) Laffer curve |
d) None of these |
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97. |
The neo‐Keynesian approach to public finance
is called |
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a) Functional finance |
b) Aggregate demand |
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c ) Global finance |
d) Federal finance |
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98.
“The best system of public finance is that which
secures the maximum social advantage from the operations which it conducts” is
the dictum of
A) Adam Smith B) Dalton C) J.B. Say D)
Marshall
99. Which
is the method of financial adjustment between Centre and States?
a)
Tax sharing b) Grant‐in‐aid
c) Public
debt d) Federal Finance
100.
Merit goods means:
a)
Public good b) Free good
c )
Rare good d)
White good
101.
The modern state is:
a)
Laissez –faire state b) Welfare state
c)
Aristocratic state d) Police state
102.
According to Musgrave the major functions of
public finance is:
a)
Allocative function b)
Distributive function
c)
Stabilisation function d) All the above
103.
Who is the author of the book “The Theory of
Public Finance”?
a)
Dalton b) R A Musgrave
c)
A.R. Prest d)Harvey Rosen
104.
A criterion by which public goods are
distinguished from private goods:
a)
Exclusion principle b) Externality
principle
c)
Public choice principle d) None of the
above
105.
Non‐rivalray and non‐excludability are the
characteristics of:
a)
Normal goods b) Demerit goods
c )
Inferior goods d) Public goods
106.
Which one of the following taxes is levied by
the State Government only?
a.
Entertainment tax b) Corporation tax
c )
Wealth tax d) Income tax
107.
Laffer curve suggest that the
a) Relationship
between tax revenue and tax rates is U‐shaped
b) Relationship
between GDP growth rate and tax rates is U‐shaped
c) Relationship
between tax revenue and tax rates is inverted U‐shaped
d) Relationship
between savings rate and tax rate is inverted U‐shaped
108.
The controlling authority of Government
expenditure is:
a)
RBI b) Planning Commission
c)
Ministry of Finance d) Finance
Commission
109.
The idea of ‘Democratic Decentralization’ in
India was popularized by:
a)
A.D. Gorwala Committee, 1951 b) B.R. Mehta Committee, 1957 c) Ashok Mehta
Committee, 1978 d) None of these
110.
A tax levied upon a firm as a percentage of
its value added
a)
Merit tax b) VAT
c)
Turnover tax d) Sales tax
111.
Which one of the following is the most
acceptable theory of taxation:
a)
Benefit theory b) Cost of service theory c) Ability to pay theory
d) None of these
112. The Kerala Panchayat Raj Act was passed in
the legislature in the year:
a)
1995 b)
1994 c ) 2000 d)
1999
113.
The concept of decentralized planning received
renewed attention in India with the:
|
73rd and 74th Constitutional Amendment Acts
of : a) 1993 |
b)1992 |
|
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C) 1995 |
d)2000 |
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114.
The Indian income tax is:
a)
Direct and proportional b) Indirect and proportional c ) Indirect and
progressive d) Direct and progressive
115.
The main objective of budgeting is:
a)
Planning b) Co‐ordination
c )
Control d)
All of these
116.
Which tax cannot be shifted to others?
a)
Excise duty b) Sales tax
c)
Entertainment tax d) Wealth tax
117.
Pump Priming is related with
A) Monetary policy B) Income policy C) Price policy
D) Fiscal policy
118.
Wiseman‐Peacock hypotheses supports in a much
stronger manner the possibility of
:
a) An upward trend in public expenditure b) A downward trend in public expenditure
c )
A constancy of public expenditure d) A
mixed trend in public expenditure
119. The theory of fiscal policy derives from (A) Principle of sound finance
(B) N.I. analysis (C) Welfare economics (D) None of these
120.
Fiscal Federalism refers to
(A) Sharing
of political power between centre and states
(B) Organising
and implementing economic plans
(C) Division
of economic functions and resources among different layers of Govt.
(D) None
of these
121.
Which one of the following is an optional
function of Government? (A) Defense
(B)
Old Age Security (C) Law and Order (D)
None of these
122. Principle of sound finance refers to (A)
Maximum Government spending
(B) Minimum
Government spending
(C) Revenue
expenditure balanced at the minimum level
(D) Balance
between Tax and spending
123. Private goods are characterized by (A) Application of exclusion principle
(B) Rivalry
in consumption (C) Payment of prices (D)
All the above
124.
The most important aim of fiscal policy in a
developing country is
(A)
economic stability (B) economic development (C) regional balance
(D) None
of these
125.
Market failure refers to a situation when
(A)
Market does not function (B) market solution
occurs if government
intervenes
(C)
Social efficiency is not achieved (D)
perfectly competitive firm experiences P > MC
126. Public goods are non‐rivial if
(A) Some
people cannot be prevented from consuming it
(B) Consumption
by one person reduces consumption of other individuals
(C)
Some people are excluded from consuming it (D) all the
above
127.
The income of the government through all its
sources is called
(A)
Public expenditure (B) public revenue (C) Public finance (D) none of these
128. The maximum effect of direct taxes is on (A)
Price of food (B) Income
(C) Capital goods (D) consumer goods
129. The Wanchoo Committee (1971) probed into (A) Direct taxes (B) indirect taxes
(C)
Agricultural holding tax (D) non‐tax
revenue
130. Deficit financing means (A)
Public expenditure in excess of public revenue
(B)
Public revenue in excess of public expenditure (C) Both (A) and (B)
(D) none of the above
131. Modvat means (A)
Modified value added tax (B)
moderate value added tax
(C)
Modest value added tax (D) modern value
added tax
132.
The
revenue of the State Government is raised from the following sources except
one, w hich is that? (A) Land revenue (B) agricultural income tax (C)
Entertainment tax
(D) expenditure
tax
133.
The Finance Commission does all the following
functions except one, which is that?
(A) Works
out allocation of taxes in the divisible pool
(B) Looks
into financial relations between the Centre and the States
(C)Allocates grants ‐ in – aid to the States
and Union Territories
(D) Assist
the Planning Commission in making 5 year plans.
134.
The methods of restoring resource balance
between different governments in a fede
ral set‐up is based on (A) Tax sharing (B) Grants
–in‐Aid (C) Loans (D) All the above
135.
Finance Commission determines
(A)
The finances of Government of India (B) The
resources transfer to t he State
(C)
The resources transfer to the various departments (D) none of the above
136. Federal Finance deals with (A)
State finances
(B)Finances
of railways (C)Local
bodies
(D) Centre‐State financial relations
137. Primary deficit means: (A)
Fiscal deficit‐ Interest
(B)Revenue
deficit‐interest payments (C)
Fiscal deficit+ revenue deficit
d) Budgetary deficit
138. Non‐Plan
Grants are determined by (A)
Planning Commission
(B)
Finance Commission (C)Central
Government (D) State Government
139. Public Debt Management refers to (A)
Terms of new bonds
(B)
Proportion of different components of public debt (C) Maturity (D) All the above
140. Public Expenditure increases (A)
Interest rate (B) Employment (C)
Exports
(D) Imports
141. Central Assistance for State and UT plan
is a part of (A) Plan Expenditure
(B)
Revenue Expenditure (C) Non‐Plan Expenditure
(D) None of the above
142. Defict financing includes a)
Borrowing from the Central Bank
b) Issues of new currency by the Government
C ) Withdrawal of past accumulated cash
balance by the government
d) All
the above
143.
The ……. had recommended certain reforms on the
devolution of Grant – in –
Aid (Plan fund) to LsGs from
2006‐07 to 2010‐11 (A) 3rd State
Finance Commission (B) 2rd State
Finance Commission (C) 1rd
State Finance Commission
(D) None
of the above
144.
There is a view that reduced rates on income
tax would lead to a significant rise in in
come tax
revenue. This view has been attributed to (A)
Herbert Simon
(B)
Arthur Laffer (C) Robert Lucas (D) J.B. Say
145. Functional
Finance functions through (A) Buying
and selling (B) giving and taking
(C)
Lending and borrowing (D) All the above
146. The ideal system of public Finance is one
where the net benefit is (A) Maximum
(B) Minimum (C) Zero
(D) Infinity
147.
The burden of long term public debt is on:
(a) Present
generation (b) past generation (c) future generation (d) none of these
148.
Public debt leads to extravagance, encouraged
resort to war and induced bad economic conditions. This statement is of :
(a) Dalton
(b) Adam Smith (C) J.K. Mehta (d) Findley Shirras
149.
The main objective of taking private loan is :
(a)
To achieve public objectives (b) to achieve
personal objectives (c) to achieve long term objectives (d) none of these
150.
Shortcoming of public debt is :
(a)
Political slavery (b) danger of insolvency (c)
danger to countrys freedom (d) all of the above
151.
Dalton has divided debt redemption fund into:
(a) Two
parts (b) three parts (c) Four parts (d) Five parts
152.
------------ refers to refusal to repay the
debt
(a) Repudiation
(b) Capital levy (c) Sinking fund (d) none of the above
153.
Marginal cost of providing the public goods to
additional consumers is :
154.
Mixed goods are those goods having benefits
which are:
(a) rival
(b) Non – rival (c) both a &b (d) none of these
155.
Critical Limit Hypothesis was associated with the
name of
(a) Dalton
(b) Colin Clarke (c) J.M. Keynes (d) Musgrave
156.
Escheat is an example of
(a) Direct
tax (b) Indirect tax (c) Both a & b (d) none of these
157.
Taxes which are based on specific qualities or
attributes of goods are called
(a) Specific
tax (b) Advalorem tax (c) customs duty (d) Excise duty
158.
The item or economic activity on which tax is
imposed is known as
(a) Tax
buoyancy (b) tax rate (c) Excess burden (d) tax base
159.
Gift tax was introduced in the year
(a) 1958
(b) 1959 (c) 1960 (d) 1961
160.
-------------------- is a broad based and a
single comprehensive tax levied on goods and services consumed in an economy
(a) VAT
(b) CENVAT (c) GST (d) None of these
161.
In India GST was introduced in the year
(a) 2016
(b) 2017 (c) 2018 (d) 2019
162.
-------------------- is the first country to
implement GST
(a) USA
(b) U K (c) Canada (d) France
163.
In which year GST was first introduced
(a) 1952
(b) 1953 (c) 1954 (d) 1955
164.
---------------- is the debt which is paid any
legal enforcement.
(a) Voluntary
debt (b) compulsory Debt (c) internal debt (d) external debt
165.
When the government raises revenue by
borrowing from within the country is known as
(a) Voluntary
debt (b) compulsory Debt (c) internal debt (d) external debt
166.
free rider problem is one of the
characteristics of
(a) Private
good (b) Public good (c) merit good (d) mixed good
167.
Those goods whose consumption and use are to
be encouraged are called
(a) Private
good (b) Public good (c) merit good (d) mixed good
168.
The concept of Merit good was introduced by
(a) Dalton
(b) Keynes (c) R A Musgrave (d) none of these
169.
The concept of merit good was introduced in
the year
(a) 1959
(b) 1960 (c) 1961 (d) 1962
170.
Education is an example of
(a) Private
good (b) Public good (c) merit good (d) mixed good
171.
The movement from older level of expenditure
and taxation to a new and higher level is called
(a) Concentration
effect (b) inspection effect (c) Displacement effect (d) none of these
172.
According to Colin Clark maximum limit of the
tolerance level is ------ of GNP
(a) 24%
(b) 25 % (c) 26% (d) 27%
173.
A proportional tax is one in which the rate of
tax remains ------- irrespective of the level of income.
(a) Zero
(b) One (c) Two (d) Constant
174.
The modern theory of tax incidence was
developed by
(a) Dalton
(b) Keynes (c) R A Musgrave (d) none of these
175.
The diffusion theory was associated with the
name of
(a)
Dalton (b) Keynes (c) R A Musgrave (d)
Mansfield
176.
The Concentration theory of tax shifting and
incidence was developed by
(a) Mercantilist
(b) Physiocrats (c) Austraian School (d) Keynesians
177.
When Ed=∞or Es=0, the whole incidence is on
(a) Buyers
(b) Sellers (c) Govt. (d) none of these
178.
When Es=∞or Ed=0, the whole incidence is on
(a) Buyers
(b) Sellers (c) Govt. (d) none of these
179.
When Ed=Es, the burden is divided between
(a) Buyers (b) Sellers (c) both a & b (d) Govt.
180.
When Es> Ed, more incidence is on
(a) Buyers
(b) Sellers (c) Govt. (d) none of these
181.
When Ed>Es, more incidence is on
(a) Buyers
(b) Sellers (c) Govt. (d) none of these
182.
Securities Transactions Tax(STT) was
introduced in the year
(a) 2004-05
(b) 2005-06 (c) 2006-07 (d) 2007-08
183.
The first state to introduce VAT was
(a) Bihar
(b) Orissa (c) Haryana (d) Kerala
184.
The VAT was first introduced in the year
(a) 2003
(b) 2004 (c) 2005 (d) 2006
185.
----------- is the process of replacing
maturing securities with new securities.
(a) Repudiation
(b) Refunding (c) Conversion (d) Capital levy
186.
---------- is a special type of “once for all”
tax on capital imposed to repay war debts.
(a) Repudiation
(b) Refunding (c) Conversion (d) Capital levy
187.
Capital Levy method has been advocated by
(a) Keyenes
(b) Musgrave (c) Ricardo (d) none of these
188.
The Current financial transactions of the
government which are of recurring in nature is known as
(a) Revenue
budget (b) Capital budget (c) Surplus Budget (d) Deficit budget
189.
--------------- is a statement of estimated
capital receipts and payments of the government over fiscal year.
(a) Revenue
budget (b) Capital budget (c) Surplus Budget (d) Deficit budget
190.
Keynes has suggested compensatory fiscal
policy to counter
(a) Recession
(b) Boom (c) inflation (d) none of these
191.
Unemployment insurance is an example of
(a) Built
in flexibility (b) Formula Flexibility (c) Discretionary Action (d) none of
these
192.
Integration of discretion and automation into
a hybrid form of fiscal policy called
(a) Built
in flexibility (b) Formula Flexibility (c) Discretionary Action (d) none of
these
193.
The existence of economic inequalities among
the states is known as
(a) Vertical
imbalance (b) Horizontal Imbalance (c) parallel imbalance (d) none of these
194.
Existence of Centre State economic inequalities
is known as
(a) Vertical
imbalance (b) Horizontal Imbalance (c) parallel imbalance (d) none of these
195.
When expenditure exceeds total tax revenue, it
is called:
a)
Surplus budget b) Balanced budget
c)
Deficit budget d) None of these
196.
A tax levied at 5 percent on the first Rs.
10,000 of income, 10 percent on the next Rs
20,000 and 12 percent on the next Rs 30,000
would be:
a)
Progressive b) Degressive
c)
Regressive d) Proportional
197.
Which of the following taxes is the most
likely to be regressive?
a)
Sales tax on mobile phone b) Excise duties on Kerosene c) Import duties on
electronic goods d) Entrainment tax
198.
The Benefit Principle of taxation states that
tax should be paid in proportion to: [C]
A) Income
B) Expenditure C) Benefit D) Utility
199.
The most accepted theory of taxation in modern
times:[D]
A) Benefit
theory B) Cost of service C) Financial Theory D)Ability theory
200.
Which one of the following is a tax base
(a) Income (b) utility (c) Intelligence (d) No
of these
PUBLIC
ECONOMICS
MULTIPLE
CHOICE QUESTIONS
Answer
Key
1. (d)
All of these
2. (d)
All of these
3. ©
Secrecy
4. (b)
Dalton
5. (a)
Compulsory
6. (c)
Raising public revenue
7. (d)
canon of equity
8. (c)
Regressive
9. (c)
on whom it is levied
10. (a)
Equitable
11. (c)
progressive
12. (a) Constant
13. (a)
Kaldor
14. (d)
Companies
15. (d)
Indirect tax
16. (c)
Corporation Tax
17. (b)
Octroi
18. (a)
A tax on special benefits
19. (b)
Public goods
20. (b)
Merit good
21. (b)
Non – excludable
22. (a)
Dalton
23. (b)
indirect money burden
24. (b)
to shift the tax burden on others
25. (a)
Adam Smith
26. D)
Classical
27. C)
Zero
28. B)
Ultimate
29. C)
Decreases
30. D)
Value
31. B)
Legitimate
32. D)
France
33. C)
National boundaries
34. D)
Keynes
35. (a)
Keynes
36. B)
Fiscal Policy
37. B)
Deficit
38. C)
Classical school
39. C)
Utility
40. C)
Horizontal
41. D)
Tourism
42. B)
Interest payments
43. A)
Unproductive
45. B)
Interest payments
46. B)
German
47. D)
Wagner
48. A)
Peacock and Wiseman
49. C)
1st April
50. C)
Revenue expenditure
51. D)
Primary deficit
52. C)
2003
53. D)
USA
54. D)
Peter Phyrr
55. C)
2006-07
56. C)
Statutory grants
57. D)Grants
in aid
58. President
59. B)
Dalton
60. A)
Finance Commission
61. C)
Keynes
62. B)
Keynes and Lerner
63. A)
Sinking fund
64. B)
K.C. Neogi
65. A)
Repayment of debt
66. B)
Budget
67. C)
Horizontal equity
68. B)
1986
69. B)
K.N. Raj
70. C)
Future generation
71. B)
1929-33
72. D)
Fiscal policy
73. C)
Inflation
74. C)
Redeemable debts
75. A)
Unfunded debts
76. B)
Floating debts
77. B)
Floating debts
78. C)
Indirect tax
79. D)
1994-95
80. C)
N.K. Singh
81. a)
Maximum Social Advanatage
82. B) 5
years
83. a)
Open market operations
84. a)
Public expenditure
85. C)
1951
86. b)
Adam Smith
87. a) Central
Government
88. a)
Maximum tax revenue
89.
b) Recommendations for tax reforms
90. b)
Same person
91. a)
Tax evasion
93. c)
Government
94. c)
Functional Finance
95. b)
Vertical Equity
96. c)
Laffer curve
97. a)
Functional finance
98. a)
Adam Smith
99. a)
Tax sharing
100.
b) Free good
101.
b) Welfare state
102.
d) All the above
103.
b) R A Musgrave
104.
a) Exclusion principle
105.
d) Public goods
106.
a. Entertainment tax
107.
a) Relationship between tax revenue and tax
rates is U‐shaped
108.
c) Ministry of Finance
109.
c) Ashok Mehta Committee, 1978
110.
b) VAT
111.
c) Ability to pay theory
112.
b) 1994
113.
b)1992
114.
d) Direct and progressive
115.
d) All of these
116.
d) Wealth tax
117.
D) Fiscal policy
118.
a) An upward trend in public expenditure
119.
(A) Principle of sound finance
120.
(C) Division of economic functions and
resources among different layers of Govt.
121.
(B) Old Age Security
122.
(C) Revenue expenditure balanced at the
minimum level
123.
(D) All the above
124.
(B) economic development
125.
(C) Social efficiency is not achieved
126.
(A) Some people cannot be prevented from
consuming it
127.
(B) public revenue
128.
(B) Income
129.
(A) Direct taxes
130.
(A) Public expenditure in excess of public
revenue
131.
(A) Modified value added tax
132.
(D) expenditure tax
133.
(D) Assist the Planning Commission in making 5
year plans
134.
(D) All the above
135.
(B) The resources transfer to the State
136.
(D) Centre‐State financial relations
137.
(A) Fiscal deficit‐ Interest
138.
(C)Central Government
139.
(D) All the above
141.
(C) Non‐Plan Expenditure
142.
d) All the above
143.
(A) 3rd State Finance Commission
144.
B) Arthur Laffer
145.
(D) All the above
146.
(A) Maximum
147.
(c) future generation
148.
(d) Findley Shirras
149.
(b) to achieve personal objectives
150.
(d) all of the above
151.
(d) Five parts
152.
A) Repudiation
153.
A) 0
154.
(c) both a &b
155.
(b) Colin Clarke
156.
(d) none of these
157.
(d) none of these
158.
(a) Specific tax
159.
(d) tax base
160.
(c) GST
161.
(b) 2017
162.
(d) France
163.
(c) 1954
164.
(b) compulsory
165.
(a) Voluntary debt
166.
(c) internal debt
167.
(b) Public good
168.
(c) Merit good
169.
(c) R A Musgrave
170.
(a) 1959
171.
(c) Merit good
172.
(c) Displacement effect
173.
(b) 25 %
174.
(d) Constant
175.
(d) Mansfield
176.
(b) Physiocrats
177.
(b) Sellers
178.
(a) Buyers
179.
(c) both a & b
180.
(a) Buyers
181.
(b) Sellers
182.
(a) 2004-05
183.
(c) Haryana
184.
(a) 2003
185.
(b) Refunding
186.
(d) Capital levy
187.
(c) Ricardo
189.
(b) Capital budget
190.
(A) Recession
191.
(a) Built in flexibility
192.
(b) Formula Flexibility
193.
(b) Horizontal Imbalance
194.
(a) Vertical imbalance
195.
(a) Surplus budget
196.
(a) Progressive
197.
b) Excise duties on Kerosene
198.
C) Benefit
199.
D)Ability theory
200.
(a) Income
3 Comments
I further request you to upload few sample papers for UN Audit and Embassy Audit Exams conducted in IAADs by C&AG of India.
With due respect,
Tajuddin