Top 150+ Solved Public Finance MCQ Questions Answer
Q. Progressive taxes:
a. increase government revenue
b. bring equality in distribution of incomes
c. act as penalty for rich people
d. both a and b
Q. The most important source of revenue to the states is
a. sales tax
b. service tax
c. excise duty
d. none of the above
Q. The tax levied on the interstate trade of goods is
a. sales tax
b. excise tax
c. service tax
d. central sales tax
Q. Which of the following taxes is/are withdrawn or abolished?
a. interest tax
b. estate duty
c. gift tax
d. all the above
Q. ………………...is that process in which taxpayer tries to shift burden of tax on others.
a. impact of tax
b. shifting of tax
c. incidence of tax
d. elasticity of tax
Q. Shifting of tax depends on ..............of goods.
a. elasticity
b. quality
c. quantity
d. durability
Q. The tax levied by the union government on income of individuals is known as
a. personal income tax
b. interest tax
c. wealth tax
d. corporation tax
Q. The tax on net income of companies is
a. personal income tax
b. interest tax
c. wealth tax
d. corporation tax
Q. All type of income received to government is called .............. income.
a. private
b. public
c. company
d. partnership
Q. The difference between total expenditure and total receipts is
a. fiscal deficit
b. budget deficit
c. primary deficit
d. revenue deficit
Q. Lump sum taxes
a. create no excess burden.
b. are not as widely used as other forms of taxation.
c. generally lack a sense of equity.
d. all of the above
Q. Externalities can be positive because
a. marginal damages do not last over time.
b. utility can be impacted positively as well as negatively.
c. there is no concept for marginal benefit.
d. positive externalities are subsidies.
Q. The economic incidence of a unit tax is
a. generally borne by the buyers.
b. generally borne by sellers.
c. generally borne by the government.
d. independent of the statutory incidence for the tax.
Q. A public good is
a. a good that the public must pay for
b. non-rival in consumption.
c. more costly than a private good.
d. paid for by the government.