Public Finance Set 7

Master of Arts in Economics (MA Economics)

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This set of Public Finance Multiple Choice Questions & Answers (MCQs) focuses on Public Finance Set 7

Q1 | The economic incidence of a unit tax is
  • generally borne by the buyers.
  • generally borne by sellers.
  • generally borne by the government.
  • independent of the statutory incidence for the tax.
Answer: independent of the statutory incidence for the tax.
Q2 | A public good is
  • a good that the public must pay for
  • non-rival in consumption.
  • more costly than a private good.
  • paid for by the government.
Answer: non-rival in consumption.
Q3 | It is difficult to evade:
  • direct tax
  • indirect
  • proportional
  • progressive tax
Answer: direct tax
Q4 | The main source of revenue of federal government is:
  • property taxes
  • token taxes
  • customs duties
  • sales tax
Answer: sales tax
Q5 | Who establishes the Finance Commission in India?
  • president
  • finance minister
  • parliament
  • governor of reserve bank of india
Answer: president
Q6 | How many Finance Commissions have been constituted so far?
  • 12
  • 13
  • 14
  • 15
Answer: 14
Q7 | Which of the following statements is not correct?
  • the first finance commission was constituted in 1951
  • chairman of the first finance commission was mr. santhanam
  • the chairman of the 12th finance commission was c. rangarajan
  • b and c
Answer: chairman of the first finance commission was mr. santhanam
Q8 | Recommendations of first Finance Commission covered which of the following periods?
  • 1951-56
  • 952-57
  • 1953-58
  • 1954-59
Answer: 952-57
Q9 | Who was the Chairman of the Seventh Finance Commission of India?
  • j. m. shelat
  • n. k. singh
  • n. k. singh
  • n. k. singh
Answer: j. m. shelat
Q10 | Horizontal equity incorporates the notion that
  • those earnings higher incomes should pay more in taxes
  • those earnings equal incomes should pay same in taxes
  • taxes paid should be unassociated with income levels
  • there should be no excess burden created by a tax
Answer: those earnings equal incomes should pay same in taxes
Q11 | Interim budget is also known as....
  • mini budget
  • vote on account
  • both a and b
  • none of these
Answer: both a and b
Q12 | What is the biggest source of Income for the Central Government in the Union Budget 2020-21?
  • goods and services tax
  • corporation tax
  • income tax
  • borrowings and other liabilities
Answer: borrowings and other liabilities
Q13 | Which of the following is not the rate of tax slab in the Union Budget 2020-21?
  • 10%
  • 15%
  • 25%
  • 40%
Answer: 40%
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