Top 150+ Solved Public Finance MCQ Questions Answer
Q. The practice by Governments in which a government spends more money than it receives as revenue isreferred to as:
a. Piggy backing
b. Direct Funding
c. Deficit financing
d. Pump Priming
Q. Expenditure on defence, interest payments, law and order maintenance and public administration expensesare generally treated as:
a. Productive Expenditure
b. Unproductive Expenditure
c. Growth-oriented Expenditure
d. Progressive Expenditure
Q. Developmental expenditure refers to
a. Revenue Expenditure incurred for meeting current expenses of the Government
b. Capital Expenditure incurred for creating long-term assets of the Government
c. Expenditure which is incurred on activities directly related to economic development
d. Expenditure which is incurred on running the normal government administration
Q. The multiplier effect is best described as:
a. the increase in final income arising from any new injection of spending
b. the increase in the expenditure of a country
c. the increase in the public debt of a country
d. the increase in investment of a country
Q. External debts can be raised from ...........
a. individuals
b. rbi
c. commercial banks
d. world bank
Q. Debts that are repaid at some specific future date are known as
a. redeemable debts
b. irredeemable debts
c. treasury bill
d. none of the above
Q. The concept of Merit goods was developed by ................
a. musgrave
b. marshall
c. adam smith
d. zak
Q. Non-rival consumption is the feature of ..............
a. public good
b. private good
c. merit good
d. necessary good
Q. The theory of second best was introduced by ...............
a. lipse and lancester
b. allen and hicks
c. samuelson and hicks
d. horrod and dommor
Q. Wiseman-Peacock was studied expenditure of .............. in 1890-1955.
a. ussr
b. usa
c. uk
d. none of these
Q. Pure theory of public expenditure is based on ..............
a. benefit
b. loss
c. profit
d. none of these
Q. Social marginal productivity criteria was developed by ...........
a. malthus
b. a. e. khan
c. a. k. sen
d. none of these
Q. Balanced budget means ................ between revenue and expenditure.
a. balance
b. unbalance
c. unequal
d. none of these