Top 150+ Solved Public Finance MCQ Questions Answer
Q. With a regressive tax, as income
a. increases, tax rate remains the same
b. decrease, the tax rate decreases
c. increases, the tax rate increases
d. increases, the tax rate decreases
Q. The principle of maximum social advantage is concerned with
a. taxation
b. expenditure
c. public debt
d. both taxation and public expenditure
Q. Justice in taxation is best ensured by applying the principle of
a. equal absolute sacrifice
b. equal proportional sacrifice
c. equal marginal sacrifice
d. quid pro quo
Q. Agriculture income tax is a source of revenue to
a. central government
b. state government
c. local administration
d. central and state government
Q. Ad Valorom means
a. according to value
b. according to weight
c. according to size
d. according to advertisement costs
Q. Octrio is levies and collected by
a. centre
b. state government
c. local bodies
d. all of the above
Q. The relationship between tax collections and tax rates has been expressed by
a. lorenz curve
b. engel’s law
c. laffer curve
d. indifference curve
Q. The merit of zero-based budgeting is that
a. tax liability is reduced
b. profit go up
c. deficit financing becomes zero
d. expenditure is rationalized
Q. The concept of Zero-Based-Budget(ZBB) was given by
a. ra musgrave
b. jm keynes
c. peter a pyhr
d. ah hancen
Q. Which of the following is a union tax?
a. Corporation tax
b. Taxes on agricultural income
c. Capitation taxes
d. Land revenues
Q. Which of the following is not a union tax?
a. Taxes on railway freights and fares
b. Stamp duties on financial documents
c. Tolls
d. A and b only
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. Corporate tax
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