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This set of Public Economics Multiple Choice Questions & Answers (MCQs) focuses on Public Economics Set 3

Q1 | The Finance Commission is appointed in every
Q2 | The maximum effect of direct taxes is on
Q3 | The Wanchoo Committee (1971) probed into
Q4 | Modvat means
Q5 | The revenue of the State Government is raised from the following sources except one,which is that?
Q6 | The Finance Commission does all the following functions except one, which is that?
Q7 | Primary deficit means:
Q8 | Non‐Plan Grants are determined by
Q9 | Public Debt Management refers to
Q10 | Public Expenditure increases
Q11 | Central Assistance for State and UT plan is a part of
Q12 | There is a view that reduced rates on income tax would lead to a significant rise in incometax revenue. This view has been attributed to
Q13 | Functional Finance functions through
Q14 | The ideal system of public Finance is one where the net benefit is
Q15 | The principle of Maximum Social Advantage is connected with
Q16 | Economic functions of the government are all the following EXCEPT to .
Q17 | Which of the following does NOT determine the nature of Public Economics?
Q18 | Which of the following describes the situation where all taxes and other revenues are less than expenditures during a given period?
Q19 | The Fundamental Theorem of Welfare Economics:
Q20 | If the economy is in an inflationary period, what action would Fiscal Policy most likely take?
Q21 | Public goods are difficult for a private market to provide due to:
Q22 | Merit goods are those which, when consumed, generate positive external benefits. This is likely to mean that, in a free market economy, the good will be:
Q23 | The optimum level of economic activity and associated pollution from society's point of view occurs where:
Q24 | If pollution by one firm results in higher production costs for another firm, this would be classified as a:
Q25 | In the case of a negative externality, the social marginal cost will: