Top 80+ Solved Public Economics MCQ Questions Answer
Q. 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
Q. The income of the government through all its sources is called
a. public expenditure
b. public revenue
c. public finance
d. none of these
Q. Which of the following are indirect taxes?
a. customs duties
b. excise duties
c. sales tax
d. all the above
Q. The maximum effect of direct taxes is on
a. price of food
b. income
c. capital goods
d. consumer goods
Q. Modvat means
a. modified value added tax
b. moderate value added tax
c. modest value added tax
d. modern value added tax
Q. The revenue of the State Government is raised from the following sources except one,which is that?
a. land revenue
b. agricultural income tax
c. entertainment tax
d. expenditure tax
Q. Public Debt Management refers to
a. terms of new bonds
b. proportion of different components of public debt
c. maturity
d. all the above
Q. There is a view that reduced rates on income tax would lead to a significant rise in incometax revenue. This view has been attributed to
a. herbert simon
b. arthur laffer
c. robert lucas
d. j.b. say
Q. Functional Finance functions through
a. buying and selling
b. giving and taking
c. lending and borrowing
d. all the above
Q. The ideal system of public Finance is one where the net benefit is
a. maximum
b. minimum
c. zero
d. infinity
Q. The principle of Maximum Social Advantage is connected with
a. taxation
b. expenditure
c. public debt
d. both (a) and (b)
Q. Economic functions of the government are all the following EXCEPT to .
a. Control the price level of public goods.
b. Create a stable economic environment.
c. Increase the level of education.
d. Distribute income and wealth.
Q. Which of the following does NOT determine the nature of Public Economics?
a. Public economics studies the government and how its policies affect the economy.
b. Public economics is the study of government policy through the lens of economic efficiency and equity.
c. Public economics builds on the theory of welfare economics and is ultimately used as a tool to improve social
d. Public Economics studies the behaviour of private firms and is called economics of Priavte Sector.