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This set of Public Economics Multiple Choice Questions & Answers (MCQs) focuses on Public Economics Set 1
Q1 | When expenditure exceeds total tax revenue, it is called:
- surplus budget
- balanced budget
- deficit budget
- none of these
Q2 | A pure private good is subject to:
- non exclusion
- exclusion
- low satisfaction
- none of thse
Q3 | Which of the following is not a fiscal instrument?
- open market operations
- public expenditure
- taxation
- none of these
Q4 | An increase in tax rate when tax base expands represents:
- progressive taxation
- regressive taxation
- proportional taxation
- none of these
Q5 | The main difference between Public and Private Finance is:
- balance of income‐expenditure
- coerciveness of fiscal power to raise income:
- dissaving
- borrowings
Q6 | The name of the Chairman of the 11th Finance Commission
- k.c. pant
- a.m. kushro
- r. j. chelliah
- n.k.p. salve
Q7 | Income tax is based on the principle of:
- ability to pay
- willingness to pay
- benefits received
- none of these
Q8 | The Principle of Maximum Social Advantage is associated with:
- dalton
- pigou
- seligman
- hicks
Q9 | Which is not the characteristic of a tax?
- import content
- compulsory payment
- non –compulsory payment
- punishment to tax evader
Q10 | Special assessment means:
- general tax on all people
- gift tax
- a tax for specific benefit conferred
- none of these
Q11 | Classical canons of taxation are propounded by:
- adam smith
- bastable
- dalton
- keynes
Q12 | The Kelkar Proposals are concerned with:
- recommendations for re4forms in the power sector
- recommendations for tax reforms
- guidelines for the privatization of public sector undertakings
- none of the above
Q13 | Value Added Tax is:
- direct tax
- indirect tax
- progressive tax
- none of these
Q14 | In the case of direct tax, impact and incidence are on:
- different person
- same person
- sellers
- none of these
Q15 | The direct violation of Tax law is called:
- tax evasion
- tax avoidance
- tax rebate
- none of these
Q16 | The final resting place of the burden of tax is called:
- tax avoidance
- tax evasion
- impact
- incidence
Q17 | Incidence of tax refers to:
- initial resting place of the burden of tax
- final resting place of the burden of tax
- both (a) and (b)
- none of these
Q18 | A tax levied at 5 percent on the first Rs. 10,000 of income, 10 percent on the next Rs 20,000and 12 percent on the next Rs 30,000 would be:
- progressive
- degressive
- regressive
- proportional
Q19 | Which of the following taxes is the most likely to be regressive?
- sales tax on mobile phone
- excise duties on kerosene
- import duties on electronic goods
- entrainment tax
Q20 | Impact of tax refers to:
- initial resting place of the burden of tax
- tax evasion
- the final money burden of tax
- none of these
Q21 | Fiscal policy is the policy of:
- rbi
- nabard
- government
- all the above
Q22 | The principle of judging fiscal measures by the way they work is called:
- personal finance
- public finance
- functional finance
- local finance
Q23 | When individuals with unequal tax paying ability should be taxed unequally in order toequalise sacrifice is called:
- horizontal equity
- vertical equity
- tax paying ability
- none of these
Q24 | The following is an example of direct taxes:
- sales tax
- income tax
- estate duties
- toll tax
Q25 | If the rate of tax falls with an increase in income, it is called:
- proportional tax
- progressive tax
- regressive tax
- none of these