Public Revenue Multiple Choice Questions and Answers

21. Pick out the factor which is not a feature of indirect taxes

1. Convenience
2. Tax evasion is difficult
3. Fair to the poor
4. Powerful tool of economic policy

22. Pick out the factor which is not a demerit of indirect taxes

1. Unjust to poor
2. Inflationary in nature
3. A tool of economic policy
4. High administrative cost

23. An ad valorem tax is charged according to the

1. Value of a commodity
2. Weight of the commodity
3. Size of the commodity
4. None of the above

24. Specific duty is charged according to

1. Value of a commodity
2. Weight of the commodity
3. Size of the commodity
4. None of the above

25. An example of direct tax is

1. Sales tax
2. Central excise duty
3. Custom duty
4. Wealth tax

26. .......................based on the principle higher the income, higher the tax

1. Progressive Tax
2. Proportion Tax
3. Regressive Tax
4. Digressive Tax

27. Generally, the nature of indirect tax is

1. Progressive
2. Regressive
3. Proportional
4. None of the above

28. Direct tax are..........................in nature

1. Progressive
2. Equitable
3. Regressive
4. None of the above

29. An increase in the direct tax means it is

1. Inflationary
2. Anti-inflationary
3. Having no impact on price
4. None of the above

30. The term impact of taxation means

1. Initial burden of the tax
2. Ultimate burden of the tax
3. Burden of tax on government
4. None of the above