Correct Answer is: modern value added tax

Public Economics MCQ Multiple Choice Questions

Q: 122. Grants recommended by the Finance Commission are known as

Correct Answer is: Conditional grants

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

Correct Answer is: None of these

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

Correct Answer is: None of these

Q: 131. Incidence of tax means

Correct Answer is: none of these

Q: 132. Indirect taxes have an element of

Correct Answer is: encourage honesty

Q: 133. Laffer curve suggest that the

Correct Answer is: Relationship between savings rate and tax rate is inverted U-shaped

Q: 135. Market failure refers to a situation when

Correct Answer is: perfectly competitive firm experiences P is greater than MC

Q: 137. Mixed goods are those goods having benefits which are

Correct Answer is: none of these

121. Gift tax was introduced in the year

1958
1959
1960
1961

122. Grants recommended by the Finance Commission are known as

Plan grants
Conditional Grants
Statutory grants
Conditional grants

123. In India GST was introduced in the year

2016
2017
2018
2019

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

Central Government
State Government
Local bodies
None of these

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

Constant
increasing
decreasing
zero

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

Different person
Same person
Sellers
None of these

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

increases
remains constant
Decreases
None

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

Compulsory
optional
forced
nationality

129. In which year GST was first introduced

1952
1953
1954
1955

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

Initial
Ultimate
Intermediate
None

131. Incidence of tax means

Direct money burden
indirect money burden
actual tax burden
none of these

132. Indirect taxes have an element of

Equitable
certainity
economical
encourage honesty

133. Laffer curve suggest that the

Relationship between tax revenue and tax rates is U-shaped
Relationship between GDP growth rate and tax rates is U-shaped
Relationship between tax revenue and tax rates is inverted U-shaped
Relationship between savings rate and tax rate is inverted U-shaped

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

135. Market failure refers to a situation when

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

136. Merit goods means

Public good
Free good
Rare good
White good

137. Mixed goods are those goods having benefits which are

rival
Non-rival
both a &b
none of these

138. Modern Canons of taxation are propounded by

Bastable
Adam Smith
Seligmon
Pigou

139. Modified Value Added Tax was introduced in India in

1951
1986
1991
1976

140. Modvat means

Modified value added tax
moderate value added tax
Modest value added tax
modern value added tax

141. Non-exclusion principle is related to

Private goods
Public goods
Merit goods
Mixed goods

142. Non-Plan Grants are determined by

Planning Commission
Finance Commission
Central Government
State Government

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

Normal goods
Demerit goods
Inferior goods
Public goods

144. Principle of sound finance refers to

Maximum Government spending
Minimum Government spending
Revenue expenditure balanced at the minimum level
Balance between Tax and spending

145. Private goods are characterized by

Application of exclusion principle
Rivalry in consumption
Payment of prices
All the above

146. Public Authorities Include

Central Government
State Government
Local Government
All of these

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

Dalton
Adam Smith
J.K. Mehta
Findley Shirras

148. Public Debt Management refers to

Terms of new bonds
Proportion of different components of public debt
Maturity
All the above

149. Public Expenditure increases

Interest rate
Employment
Exports
Imports

150. Public Goods are

Excludable
Non-excludable
Marketable
All of these

Public Economics MCQ Multiple Choice Questions - Page 5 for Practice

Public Economics MCQ Questions for Practice

121. Gift tax was introduced in the year

122. Grants recommended by the Finance Commission are known as

123. In India GST was introduced in the year

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

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

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

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

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

129. In which year GST was first introduced

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

131. Incidence of tax means

132. Indirect taxes have an element of

133. Laffer curve suggest that the

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

135. Market failure refers to a situation when

136. Merit goods means

137. Mixed goods are those goods having benefits which are

138. Modern Canons of taxation are propounded by

139. Modified Value Added Tax was introduced in India in

140. Modvat means

141. Non-exclusion principle is related to

142. Non-Plan Grants are determined by

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

144. Principle of sound finance refers to

145. Private goods are characterized by

146. Public Authorities Include

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

148. Public Debt Management refers to

149. Public Expenditure increases

150. Public Goods are

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Public Economics MCQ Multiple Choice Questions - Page 5 for Practice

Public Economics MCQ Questions for Practice

121. Gift tax was introduced in the year

122. Grants recommended by the Finance Commission are known as

123. In India GST was introduced in the year

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

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

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

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

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

129. In which year GST was first introduced

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

131. Incidence of tax means

132. Indirect taxes have an element of

133. Laffer curve suggest that the

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

135. Market failure refers to a situation when

136. Merit goods means

137. Mixed goods are those goods having benefits which are

138. Modern Canons of taxation are propounded by

139. Modified Value Added Tax was introduced in India in

140. Modvat means

141. Non-exclusion principle is related to

142. Non-Plan Grants are determined by

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

144. Principle of sound finance refers to

145. Private goods are characterized by

146. Public Authorities Include

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

148. Public Debt Management refers to

149. Public Expenditure increases

150. Public Goods are

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