On This Page
This set of Public Economics Multiple Choice Questions & Answers (MCQs) focuses on Public Economics Set 2
Q1 | Which is the method of financial adjustment between Centre and States?
- tax sharing
- grant‐in‐aid
- public debt
- federal finance
Q2 | Who suggested an expenditure tax as an alternative to income tax?
- musgrave
- galbraith
- dalton
- kaldor
Q3 | Budget is an instrument of:
- monetary policy
- fiscal policy
- trade policy
- exchange rate policy
Q4 | The concept of functional finance was developed by:
- j.m. keynes
- a.p. lerner
- kaldor
- pigou
Q5 | The modern state is:
- laissez –faire state
- welfare state
- aristocratic state
- police state
Q6 | According to Musgrave the major functions of public finance is:
- allocative function
- distributive function
- stabilisation function
- all the above
Q7 | Who is the author of the book “The Theory of Public Finance”?
- dalton
- r.a. musgrave
- a.r. prest
- harvey rosen
Q8 | A criterion by which public goods are distinguished from private goods:
- exclusion principle
- externality principle
- public choice principle
- none of the above
Q9 | Who was the first to recommend the adoption of an expenditure tax for India?
- k.n. raj
- paul krugman
- raja j. chelliah
- n. kaldor
Q10 | The controlling authority of Government expenditure is:
- rbi
- planning commission
- ministry of finance
- finance commission
Q11 | The idea of ‘Democratic Decentralization’ in India was popularized by:
- a.d. gorwala committee, 1951
- b.r. mehta committee, 1957
- ashok mehta committee, 1978
- none of these
Q12 | Which one of the following is the most acceptable theory of taxation:
- benefit theory
- cost of service theory
- ability to pay theory
- none of these
Q13 | The incidence of tax refers to:
- the level and rate of taxation
- who ultimately pays the tax
- the growth of taxation
- the way in which tax is collected
Q14 | The theory of fiscal policy derives from
- principle of sound finance
- n.i. analysis
- welfare economics
- none of these
Q15 | The most important source of public revenue is
- fees
- commercial revenue
- tax
- fines & penalties
Q16 | Fiscal Federalism refers to
- sharing of political power between centre and states
- organising and implementing economic plans
- division of economic functions and resources among different layers of govt.
- none of these
Q17 | Which one of the following is an optional function of Government?
- defense
- old age security
- law and order
- none of these
Q18 | Principle of sound finance refers to
- maximum government spending
- minimum government spending
- revenue expenditure balanced at the minimum level
- balance between tax and spending
Q19 | Private goods are characterized by
- application of exclusion principle
- rivalry in consumption
- payment of prices
- all the above
Q20 | Tax refers to10
- compulsory contribution
- payment by the people to government
- no direct return for the payment
- all the above
Q21 | . Pump priming is
- injection of purchasing power into the public through government spending
- withdrawal of purchasing power from the public
- balancing revenue and expenditure
- none of the above
Q22 | Merit goods means
- private goods
- public goods
- subsidized private goods
- none of these
Q23 | The most important aim of fiscal policy in a developing country is
- economic stability
- economic development
- regional balance
- none of these
Q24 | The income of the government through all its sources is called
- public expenditure
- public revenue
- public finance
- none of these
Q25 | Which of the following are indirect taxes?
- customs duties
- excise duties
- sales tax
- all the above