Top 80+ Solved Public Economics MCQ Questions Answer
Q. 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
Q. Who was the first to recommend the adoption of an expenditure tax for India?
a. k.n. raj
b. paul krugman
c. raja j. chelliah
d. n. kaldor
Q. The controlling authority of Government expenditure is:
a. rbi
b. planning commission
c. ministry of finance
d. finance commission
Q. The idea of ‘Democratic Decentralization’ in India was popularized by:
a. d. gorwala committee, 1951
b. b.r. mehta committee, 1957
c. ashok mehta committee, 1978
d. none of these
Q. 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
Q. The incidence of tax refers to:
a. the level and rate of taxation
b. who ultimately pays the tax
c. the growth of taxation
d. the way in which tax is collected
Q. The theory of fiscal policy derives from
a. principle of sound finance
b. n.i. analysis
c. welfare economics
d. none of these
Q. The most important source of public revenue is
a. fees
b. commercial revenue
c. tax
d. fines & penalties
Q. 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
Q. 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
Q. 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
Q. Private goods are characterized by
a. application of exclusion principle
b. rivalry in consumption
c. payment of prices
d. all the above
Q. Tax refers to10
a. compulsory contribution
b. payment by the people to government
c. no direct return for the payment
d. all the above
Q. . Pump priming is
a. injection of purchasing power into the public through government spending
b. withdrawal of purchasing power from the public
c. balancing revenue and expenditure
d. none of the above