Top 150+ Solved Public Finance MCQ Questions Answer
Q. A progressive income tax implies that
a. the amount of tax falls with a rise in income
b. the rate of rises with a rise in income
c. both (a) and (b)
d. the rate of tax decreases with a rise in income
Q. A forward-shifted tax will affect
a. buyers more than sellers
b. sellers more than buyers
c. buyers and sellers equally
d. government revenues negatively
Q. If with the increase in income, the percentage of income collected as tax remains constant, tax will becalled
a. regressive
b. progressive
c. proportional
d. neutral
Q. Repayment of public debt refers to
a. discharging duties
b. redemption of public debt
c. repayment
d. recovery
Q. Which of the following canon of taxation is given by Adam Smith
a. canon of diversity
b. canon of simplicity
c. canon of economy
d. canon of productivity
Q. Tobin tax is a tax on
a. taxation in the share market
b. transaction in the money market
c. transaction on the commodity market
d. transaction on the foreign exchange market
Q. In case of deficit budget, when the deficits are covered through taxes, that budget is called:
a. unbalanced budget
b. surplus budget
c. balanced budget
d. none of these
Q. Expenditure tax was introduced in India as per the recommendation of ………………
a. nehru
b. kaldor
c. k n raj
d. john mathai
Q. According to Wiseman and peacock, public expenditure will increase in a
a. smooth manner
b. reverse manner
c. step – like manner
d. none of the above
Q. Concept of concentration and displacement effect in public expenditure are attributed to
a. allen t. peacock and jack wiseman
b. a r prest and i m d little
c. a c pigou and j k mehta
d. kenneth arrow and paul a samuelson
Q. The greater the elasticity of supply, the greater is
a. incidence of tax on buyers
b. incidence of tax on sellers
c. impact of tax on sellers
d. impact of tax on buyers
Q. The ability to pay principle of taxation is logically most consistent with the normative notion of :
a. tax neutrality
b. horizontal equity
c. value – added taxation
d. vertical equality
Q. Which committee recommended tax on agriculture holding in India?
a. tandor committee
b. raj committee
c. kelkar committee
d. dantwala committee