Public Economics MCQ Quiz - Multiple Choice Questions & Answers

1. The equity principle of taxation was propounded by

1. Adam Smith
2. Dalton
3. J.B Say
4. Marshall

2. The existence of economic inequalities among the states is known as

1. Vertical imbalance
2. Horizontal Imbalance
3. parallel imbalance
4. none of these

3. The final resting place of the burden of tax is called

1. Tax avoidance
2. Tax evasion
3. Impact
4. Incidence

4. The Finance Commission does all the following functions except one, which is that?

1. Works out allocation of taxes in the divisible pool
2. Looks into financial relations between the Centre and the States
3. Allocates grants -in-aid to the States and Union Territories
4. Assist the Planning Commission in making 5 year plans.

5. The Finance Commission in India is appointed by

1. President
2. Prime Minister
3. Chief Minister
4. Finance Minister

6. The finance commission is appointed every

1. 3 years
2. 5 years
3. 6 years
4. 7 years

7. The financial year in India starts from

1. 1st January
2. 31st March
3. 1st April
4. 1st July

8. The First Finance Commission was appointed in the year

1. 1949
2. 1950
3. 1951
4. 1952

9. The first state to introduce VAT was

1. Bihar
2. Orissa
3. Haryana
4. Kerala

10. The FRBM Act was passed in

1. 1991
2. 2001
3. 2003
4. 2011