Public Economics Multiple Choice Questions and Answers

161. When individuals with unequal tax paying ability should be taxed unequally in order to equal sacrifice is called

1. Horizontal equity
2. Vertical Equity
3. Tax paying ability
4. None of these

162. When the government raises revenue by borrowing from within the country is known as

1. Voluntary debt
2. compulsory Debt
3. internal debt
4. external debt

163. Which is the main objective of a tax

1. Increase in consumption
2. increase in production
3. Raising public revenue
4. reduction in capital formation

164. Which is the main point on the basis of which public finance can be separated from private finance

1. Price policy
2. Borrowings
3. Secrecy
4. Elasticity in income

165. Which is the method of financial adjustment between Centre and States?

1. Tax sharing
2. Grant-in-aid
3. Public debt
4. Federal Finance

166. Which is the tax shifting

1. To bear the tax burden himself
2. to shift the tax burden on others
3. to bear some part of the tax himself and shift the rest on others
4. none of these

167. Which of the following is a Statutory Body?

1. Finance Commission
2. Planning Commission
3. State Planning Board
4. None of these

168. Which of the following is not a Commodity Tax

1. Excise duty
2. Customs Duty
3. Coporation Tax
4. Octroi

169. Which of the following is the major source of revenue in India

1. Direct tax
2. Capital Levy
3. Grants in aid
4. Indirect tax

170. Which of the following taxes is the most likely to be regressive?

1. Sales tax on mobile phone
2. Excise duties on Kerosene
3. Import duties on electronic goods
4. Entrainment tax