Public Economics Multiple Choice Questions and Answers

171. Which one of the following is a tax base

1. Income
2. utility
3. Intelligence
4. No of these

172. Which one of the following is an optional function of Government?

1. Defense
2. Old Age Security
3. Law and Order
4. None of these

173. Which one of the following is not a method for redeeming public debt?

1. Sinking fund
2. Capital levy
3. Terminal annuities
4. Grants in aid

174. Which one of the following is not a public utility?

1. Electricity
2. Water supply
3. Gas service
4. Tourism

175. Which one of the following is not a tax base?

1. Income
2. wealth
3. Utility
4. Consumption

176. Which one of the following is the most acceptable theory of taxation

1. Benefit theory
2. Cost of service theory
3. Ability to pay theory
4. None of these

177. Which one of the following taxes is levied by the State Government only?

1. Entertainment tax
2. Corporation tax
3. Wealth tax
4. Income tax

178. Which tax cannot be shifted to others?

1. Excise duty
2. Sales tax
3. Entertainment tax
4. Wealth tax

179. Who is the author of the book The Theory of Public Finance?

1. Dalton
2. R A Musgrave
3. A.R. Prest
4. Harvey Rosen

180. Who is the exponent of Law of Increasing State Activities?

1. Dalton
2. Pigou
3. Smith
4. Wagner