Public Economics MCQ Quiz - Multiple Choice Questions & Answers Page 3

21. The largest component of revenue expenditure in India is

1. Pension
2. Interest payments
3. Education
4. Health

22. The largest component of revenue expenditure in India is

1. Pension
2. Interest payments
3. Education
4. Health

23. The main objective of budgeting is

1. Planning
2. Co-ordination
3. Control
4. All of these

24. The main objective of taking private loan is

1. To achieve public objectives
2. to achieve personal objectives
3. to achieve long term objectives
4. none of these

25. The maximum effect of direct taxes is on

1. Price of food
2. Income
3. Capital goods
4. consumer goods

26. The methods of restoring resource balance between different governments in a federal set-up is based on

1. Tax sharing
2. Grants-in-Aid
3. Loans
4. All the above

27. The modern state is

1. Laissez-faire state
2. Welfare state
3. Aristocratic state
4. Police state

28. The modern theory of tax incidence was developed by

1. Dalton
2. Keynes
3. R A Musgrave
4. none of these

29. The most accepted theory of taxation in modern times

1. Benefit theory
2. Cost of service
3. Financial Theory
4. Ability theory

30. The movement from older level of expenditure and taxation to a new and higher level is called

1. Concentration effect
2. inspection effect
3. Displacement effect
4. none of these