Top 150+ Solved Public Finance MCQ Questions Answer
Q. An uncrowded toll road is ________ because it is ________.
a. not a pure public good; non-rival but excludable
b. not a pure public good; both rival and excludable
c. a pure public good; both non-rival and non-excludable
d. not a pure public good; non-excludable but rival
Q. A good or service or a resource is 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 enjoying the benefits of it.
d. its use by one person does not decrease the quantity available for someone else.
Q. A good or service or a resource is non-rival if
a. it is not possible to prevent someone from enjoying the benefits of it.
b. it is possible to prevent someone from enjoying the benefits of it.
c. its use by one person decreases the quantity available for someone else.
d. its use by one person does not decrease the quantity available for someone else.
Q. If the consumption of Good A by one person does not decrease the consumption of Good A byanother person, then the good is said to
a. non-excludable.
b. excludable.
c. non-rival.
d. rival.
Q. The nature of federalism was changed forever by
a. missouri v. department of interior
b. gibbons v. ogden.
c. the civil war
d. chief justice rutledge.
Q. Cooperative federalism is characterized by
a. increasing power of local governments.
b. a stronger, more influential national government.
c. a shift in power from the national to state governments.
d. stronger state governments.
Q. Peacock and Wiseman Hypothesis on public expenditure consists of three concepts which are:
a. subscription effect, tax effect, expenditure effect
b. tax effect, expenditure effect, consumption effect
c. displacement effect, concentration effect, inspection effect
d. consumption effect, labour effect, income effect
Q. According to Peackock Wiseman hypothesis, A discontinuity in the growth pattern whichproduces expenditure peak during social disturbances is referred to as:
a. displacement effect
b. concentration effect
c. inspection effect
d. substitution effect
Q. The theory of fiscal policy derives from
a. principle of sound finance
b. n.i. analysis
c. welfare economics
d. none of these
Q. Fiscal Federalism refers to
a. sharing of political power between centre and states
b. organising and implementing economic plans
c. division of economic functions and resources among different layers of government
d. none of these
Q. Mixed goods are those goods having benefits which are:
a. rival
b. non-rival
c. both a & b
d. none of these
Q. _________ is a broad based and a single comprehensive tax levied on goods and servicesconsumed in an economy
a. vat
b. cenvat
c. gst
d. none of these