Top 150+ Solved Public Finance MCQ Questions Answer
Q. Impact of a tax refers to
a. final money burden
b. immediate money burden
c. indirect real burden
d. none of the above
Q. Which factor has no role in the shifting of a tax?
a. change in prices
b. elasticity of demand and supply
c. nature of demand
d. income of the consumer
Q. Which of the following is not a direct tax?
a. income tax
b. wealth tax
c. gift tax
d. service tax
Q. Which of the following is administrative non-tax revenue?
a. fees
b. gifts
c. grants
d. profits of govt. enterprises
Q. Which of the following is not an indirect tax?
a. sales tax
b. custom duty
c. excise duty
d. gift tax
Q. Generally, the nature of indirect tax is ……………
a. progressive
b. regressive
c. proportional
d. none of the above
Q. The term incidence of taxation refers to .....
a. initial burden of the tax
b. final burden of the tax
c. burden of tax on government
d. none of the above
Q. Debts which have to be paid at some specific future date are known as
a. redeemable debts
b. irredeemable debts
c. treasury
d. none of the above
Q. Which is / are the advantages of redemption of debt.
a. saves the government from bankruptcy
b. reduces cost
c. saves future generation from the pressure of public debt
d. all of the above
Q. Pick out the item which is not a part of tax revenue.
a. interest
b. corporate tax
c. excise
d. customs
Q. The term fiscal federalism was introduced by
a. dalton
b. seligman c
c. musgrave
d. none of the above
Q. The theory of fiscal federalism assumes –
a. a federal system of government can be efficient and effective in solving problems.
b. a federal government will be able to bring about economic stability allocation of resources.
c. since states and localities are not equal in their income, federalism is helpful.
d. all of the above
Q. An empirical law to the effect of growing public expenditure was propounded by
a. wagner
b. peacock
c. wiseman
d. none of these
Q. Productive debts are utilized for ........
a. transfer payments in form of subsidies
b. they are raised for financing wars
c. they add to productive capacity of the economy
d. special incentives to weaker sections