Top 80+ Solved Public Economics MCQ Questions Answer
Q. A tax either on consumers or on producers:
a. Creates a loss only to consumers.
b. Creates a loss only to producers.
c. Creates a net gain for the society as a whole.
d. Creates a dead weight loss for society as a whole.
Q. The direct violation of Tax law is called:
a. Tax Avoidance.
b. Tax Rebate.
c. Tax Evasion.
d. Tax Incidence.
Q. In the case of relatively elastic demand, the money burden of tax is on:
a. Entirely on seller.
b. More on seller.
c. Entirely on buyer.
d. More on buyer.
Q. With increase in urbanisation and industrialisation, the role of Government started:
a. Increasing.
b. Declining.
c. Stagnant.
d. Unstable.
Q. Which of the following is NOT the subject matter of Public Finance?
a. Public Revenue & Expenditure.
b. Business administration.
c. Public Debt.
d. Fiscal Policy.
Q. The most important aim of fiscal policy in a developing country is:
a. Public Revenue.
b. Regional balance.
c. Economic stability.
d. Economic development.
Q. .If a good is a public good, then:
a. People who do not pay can be excluded from consuming the good.
b. Consumption is regulated.
c. People who do not pay cannot be excluded from consuming the good.
d. Consumption is deregulate
Q. A market failure can best be defined as a situation where:
a. Markets enable buyers to gain utility.
b. Markets fail to allocate resources efficiently.
c. Markets fail to enable sellers to make profits.
d. Markets encourage people to take risks.
Q. The “Tragedy of the Commons” is:
a. Discovery of corruption among members of the Society.
b. Existence of Market Failure.
c. Exhaustion of resources that are collectively owned.
d. Outrageous crime in a Boston public park.
Q. A tax that takes away a higher proportion of one's income as the income rises is termed as a:
a. Progressive Tax.
b. Regressive Tax.
c. Proportional Tax.
d. Indirect Tax.
Q. Loans taken by the government for purpose of war, earthquakes for covering budget deficit are:
a. Productive Debts.
b. Unproductive Debts.
c. Voluntary Debts
d. External Debts.
Q. The incidence of tax refers to:
a. The level and rate of taxation.
b. The growth of taxation.
c. The way in which tax is collected.
d. Who ultimately pays the tax.
Q. In the case of direct tax, impact and incidence are on:
a. Same person.
b. Sellers.
c. Different person.
d. Producer.