Top 80+ Solved Public Economics MCQ Questions Answer
Q. Incidence of tax refers to:
a. initial resting place of the burden of tax
b. final resting place of the burden of tax
c. both (a) and (b)
d. none of these
Q. A tax levied at 5 percent on the first Rs. 10,000 of income, 10 percent on the next Rs 20,000and 12 percent on the next Rs 30,000 would be:
a. progressive
b. degressive
c. regressive
d. proportional
Q. 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
Q. Impact of tax refers to:
a. initial resting place of the burden of tax
b. tax evasion
c. the final money burden of tax
d. none of these
Q. The principle of judging fiscal measures by the way they work is called:
a. personal finance
b. public finance
c. functional finance
d. local finance
Q. When individuals with unequal tax paying ability should be taxed unequally in order toequalise sacrifice is called:
a. horizontal equity
b. vertical equity
c. tax paying ability
d. none of these
Q. The following is an example of direct taxes:
a. sales tax
b. income tax
c. estate duties
d. toll tax
Q. If the rate of tax falls with an increase in income, it is called:
a. proportional tax
b. progressive tax
c. regressive tax
d. none of these
Q. Who suggested an expenditure tax as an alternative to income tax?
a. musgrave
b. galbraith
c. dalton
d. kaldor
Q. Budget is an instrument of:
a. monetary policy
b. fiscal policy
c. trade policy
d. exchange rate policy
Q. The concept of functional finance was developed by:
a. j.m. keynes
b. a.p. lerner
c. kaldor
d. pigou
Q. The modern state is:
a. laissez –faire state
b. welfare state
c. aristocratic state
d. police state
Q. According to Musgrave the major functions of public finance is:
a. allocative function
b. distributive function
c. stabilisation function
d. all the above
Q. 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