Public Economics MCQs Quiz Multiple Choice Questions & Answers Page 3

101. Dalton has divided debt redemption fund into

1. Two parts
2. three parts
3. Four parts
4. Five parts

102. Deficit financing may lead to

1. Poverty
2. Unemployment
3. Inflation
4. Deflation

103. Deficit financing means

1. Public expenditure in excess of public revenue
2. Public revenue in excess of public expenditure
3. Both A and B
4. none of the above

104. Defict financing includes

1. Borrowing from the Central Bank
2. Issues of new currency by the Government
3. Withdrawal of past accumulated cash balance by the government
4. All the above

105. Direct taxes have the element of

1. Evasion
2. convenient
3. progressive
4. economy

106. Education is an example of

1. Public good
2. Merit good
3. Social good
4. Club good

107. Education is an example of

1. Private good
2. Public good
3. merit good
4. mixed good

108. Elastic revenue response to marginal tax rate reductions is called

1. Marginal tax curve
2. Functional curve
3. Laffer curve
4. None of these

109. Equals treated equally in taxation leads to

1. Vertical equity
2. Real equity
3. Horizontal equity
4. None

110. Equals treated equally in taxation leads to

1. Vertical equity
2. Real equity
3. Horizontal equity
4. None

111. Escheat is an example of

1. Direct tax
2. Indirect tax
3. Both a & b
4. none of these

112. Existence of Centre State economic inequalities is known as

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

113. Expenditure Tax for India was recommended by

1. Kaldor
2. Colin Clarke
3. Adam Smith
4. Adolph Wagnor

114. Federal Finance deals with

1. State finances
2. Finances of railways
3. Local bodies
4. Centre-State financial relations

115. Finance Commission determines

1. The finances of Government of India
2. The resources transfer to the State
3. The resources transfer to the various departments
4. none of the above

116. Formation of...............is the actual method of debt redemption

1. Sinking fund
2. Capital levy
3. Conversion
4. Repudiation

117. free rider problem is one of the characteristics of

1. Private good
2. Public good
3. merit good
4. mixed good

118. Functional Finance concept was introduced by

1. Marx and Angels
2. Keynes and Lerner
3. Dalton and Pigou
4. J.S. Mill

119. Functional Finance functions through

1. Buying and selling
2. giving and taking
3. Lending and borrowing
4. All the above

120. Gender budgeting started in India with the Union budget of

1. 1991-92
2. 2001-02
3. 2006-07
4. 2010-11

121. Gift tax was introduced in the year

1. 1958
2. 1959
3. 1960
4. 1961

122. Grants recommended by the Finance Commission are known as

1. Plan grants
2. Conditional Grants
3. Statutory grants
4. Conditional grants

123. In India GST was introduced in the year

1. 2016
2. 2017
3. 2018
4. 2019

124. In India, personal income tax is levied on individuals by

1. Central Government
2. State Government
3. Local bodies
4. None of these

125. In proportional tax system, the rates of tax remain

1. Constant
2. increasing
3. decreasing
4. zero

126. In the case of direct tax, impact and incidence are on

1. Different person
2. Same person
3. Sellers
4. None of these

127. In the case of regressive tax, the rate of tax.....................as income increases

1. increases
2. remains constant
3. Decreases
4. None

128. In the following which is the characterstic of a tax

1. Compulsory
2. optional
3. forced
4. nationality

129. In which year GST was first introduced

1. 1952
2. 1953
3. 1954
4. 1955

130. Incidence of a tax refers to the........................burden of tax

1. Initial
2. Ultimate
3. Intermediate
4. None

131. Incidence of tax means

1. Direct money burden
2. indirect money burden
3. actual tax burden
4. none of these

132. Indirect taxes have an element of

1. Equitable
2. certainity
3. economical
4. encourage honesty

133. Laffer curve suggest that the

1. Relationship between tax revenue and tax rates is U-shaped
2. Relationship between GDP growth rate and tax rates is U-shaped
3. Relationship between tax revenue and tax rates is inverted U-shaped
4. Relationship between savings rate and tax rate is inverted U-shaped

134. Marginal cost of providing the public goods to additional consumers is

1. 1
2. 2
3. 3

135. Market failure refers to a situation when

1. Market does not function
2. market solution occurs if government intervenes
3. Social efficiency is not achieved
4. perfectly competitive firm experiences P is greater than MC

136. Merit goods means

1. Public good
2. Free good
3. Rare good
4. White good

137. Mixed goods are those goods having benefits which are

1. rival
2. Non-rival
3. both a &b
4. none of these

138. Modern Canons of taxation are propounded by

1. Bastable
2. Adam Smith
3. Seligmon
4. Pigou

139. Modified Value Added Tax was introduced in India in

1. 1951
2. 1986
3. 1991
4. 1976

140. Modvat means

1. Modified value added tax
2. moderate value added tax
3. Modest value added tax
4. modern value added tax

141. Non-exclusion principle is related to

1. Private goods
2. Public goods
3. Merit goods
4. Mixed goods

142. Non-Plan Grants are determined by

1. Planning Commission
2. Finance Commission
3. Central Government
4. State Government

143. Non-rivalray and non-excludability are the characteristics of

1. Normal goods
2. Demerit goods
3. Inferior goods
4. Public goods

144. Principle of sound finance refers to

1. Maximum Government spending
2. Minimum Government spending
3. Revenue expenditure balanced at the minimum level
4. Balance between Tax and spending

145. Private goods are characterized by

1. Application of exclusion principle
2. Rivalry in consumption
3. Payment of prices
4. All the above

146. Public Authorities Include

1. Central Government
2. State Government
3. Local Government
4. All of these

147. Public debt leads to extravagance, encouraged resort to war and induced badeconomic conditions. This statement is of

1. Dalton
2. Adam Smith
3. J.K. Mehta
4. Findley Shirras

148. Public Debt Management refers to

1. Terms of new bonds
2. Proportion of different components of public debt
3. Maturity
4. All the above

149. Public Expenditure increases

1. Interest rate
2. Employment
3. Exports
4. Imports

150. Public Goods are

1. Excludable
2. Non-excludable
3. Marketable
4. All of these