Top 150+ Solved Public Finance MCQ Questions Answer
Q. The modern state is:
a. laissez–faire state
b. welfare state
c. aristocratic state
d. police state
Q. Which one of the following is the most acceptable theory of taxation:
a. benefit theory
b. cost of service theory
c. ability to pay theory
d. none of these
Q. The Indian income tax is:
a. direct and proportional
b. indirect and proportional
c. indirect and progressive
d. direct and progressive
Q. A negative externality is
a. conflict relation with a foreign country
b. deficit in external trade
c. hurting effect of a private action on other people
d. rain outdoors.
Q. The “Tragedy of the Commons” is
a. discovery of corruption among members of the british parliament.
b. exhaustion of resources that are collectively owned.
c. outrageous crime in a boston public park.
d. play by arthur miller.
Q. Which of the following is a public good?
a. house.
b. traffic sign.
c. both of the above.
d. none of the above
Q. The provision of public goods requires
a. competition among firms in the market
b. lobbying
c. trade protection
d. none of the above.
Q. Public goods are those for which
a. external costs exist.
b. individuals who do not pay cannot be excluded from consuming.
c. individuals who do not pay can be excluded from consuming.
d. no external costs exist.
Q. When consumption of a good is non-rival and non-excludable, the good is a
a. public good.
b. mixed good.
c. private good.
d. service.
Q. Of those listed below, the best example of a pure public good is
a. a radio broadcast.
b. a book.
c. a rock concert held in a small auditorium.
d. a state lottery
Q. Pure private goods are those for which consumption is
a. non-rival and excludable.
b. rival and excludable.
c. rival and non-excludable.
d. non-rival and non-excludable.
Q. When consumption is rival and excludable, the product is a
a. private good.
b. service not a good.
Q. A good or service or a resource is non-excludable if
a. it is possible to prevent someone from enjoying the benefits of it.
b. its use by one person decreases the quantity available for someone else.
c. it is not possible to prevent someone from benefiting from it.
d. its use by one person does not decrease the quantity available for someone else