Top 150+ Solved Public Finance MCQ Questions Answer
Q. Which of the following describes the situation where revenues and expenditures are equal during a givenperiod?
a. Public Debt
b. Budget Surplus
c. Balanced Budget
d. Budget Deficit
Q. Old age pension is “National Old Age Pension Schemes”, “Interest payments”, “Subsidies”, “Unemployment allowances”, “Welfare benefits to weaker sections, etc.” By incurring such expenditure, the government does not get anything in return, but it adds to the welfare of the people, especially belong to the weaker sections of the society. Such expenditure basically results in redistribution of money incomes within the society.
a. Non-Transfer Expenditure
b. Transfer Expenditure or transfer payments
c. Capital Expenditure
d. Non-Distributive Expenditure
Q. With increase in urbanization and industrialization, the role of Government started:
a. Declining
b. Increasing
c. Stagnant
d. Unstable
Q. The ratio of change in the national income in relation to the change in government spending that causes it isreferred to as:
a. Fiscal Multiplier
b. Spending Ratio
c. Expenditure Ratio
d. Cost Multiplier
Q. Expenditures incurred on civil administration, defence forces is in the nature of
a. Capital Expenditure
b. Revenue Expenditure
c. Transfer Expenditure
d. Productive Expenditure
Q. If interest payments are subtracted from gross fiscal deficit, the remainder will be
a. revenue deficit
b. gross primary deficit
c. capital deficit
d. budgetary deficit
Q. Interest payment is an item of
a. revenue expenditure
b. capital expenditure
c. plan expenditure
d. none of these
Q. The basis of corporate tax is
a. total turnover of the company
b. profit after distribution of dividend
c. profit before distribution of dividend
d. capital employed in the company
Q. Federalism refers to a
a. relationship between the national and state governments.
b. relationship among the state governments.
c. political system in which power is vested in the state governments.
d. political system in which power is vested in the national government.
Q. The objective of taxation by the Government are –
a. raising revenue for the state
b. to maintain economic stability
c. to remove disparities in the distribution of income
d. all of the above
Q. Which of the following is not a direct tax?
a. personal income tax
b. service tax
c. wealth tax
d. corporate income tax
Q. The following is not a characteristic of a tax.
a. it is a compulsory payment
b. every tax involves a sacrifice by tax payer
c. there is a quid-pro-quo between the tax payer and the government.
d. refusal to pay tax is a punishable offence.
Q. The following is a characteristic of indirect tax –
a. the impact and incidence are not on the same person.
b. it is levied on income.
c. taxes are progressive in nature.
d. all of the above