Public Economics MCQ Multiple Choice Questions Answers

Q: 2. The existence of economic inequalities among the states is known as

Correct Answer is: none of these

Q: 4. The Finance Commission does all the following functions except one, which is that?

Correct Answer is: Allocates grants -in-aid to the States and Union Territories

Q: 5. The Finance Commission in India is appointed by

Correct Answer is: Finance Minister

Q: 13. The idea of ..Democratic Decentralization in India was popularized by

Correct Answer is: None of these

Q: 15. The income of the government through all its sources is called

Correct Answer is: none of these

Q: 16. The Indian income tax is

Correct Answer is: Indirect and progressive

Q: 19. The Kelkar Proposals are concerned with

Correct Answer is: None of the above

Welcome to our Public Economics MCQs category page! Here, you'll find a comprehensive set of multiple-choice questions designed to help students and exam aspirants master the key concepts of Public Economics.

About Public Economics MCQ Questions

Public Economics is a branch of economics that focuses on the role of the government in the economy. It covers topics such as taxation, public spending, fiscal policy, and the impact of government policies on economic outcomes. Our MCQs are designed to test your understanding of these critical concepts.

Why Practice Public Economics Objective Questions?

Practicing Public Economics MCQs is essential for several reasons. It helps you prepare for school and college exams, competitive exams, and interviews. Regular practice enhances your understanding of the subject, improves your problem-solving skills, and boosts your confidence. It also helps you identify areas where you need more study and revision.

Who Should Use These MCQs?

Public Economics MCQ Questions for Practice

1. The equity principle of taxation was propounded by

Adam Smith
Dalton
J.B Say
Marshall

2. The existence of economic inequalities among the states is known as

Vertical imbalance
Horizontal Imbalance
parallel imbalance
none of these

3. The final resting place of the burden of tax is called

Tax avoidance
Tax evasion
Impact
Incidence

4. The Finance Commission does all the following functions except one, which is that?

Works out allocation of taxes in the divisible pool
Looks into financial relations between the Centre and the States
Allocates grants -in-aid to the States and Union Territories
Assist the Planning Commission in making 5 year plans.

5. The Finance Commission in India is appointed by

President
Prime Minister
Chief Minister
Finance Minister

6. The finance commission is appointed every

3 years
5 years
6 years
7 years

7. The financial year in India starts from

1st January
31st March
1st April
1st July

8. The First Finance Commission was appointed in the year

1949
1950
1951
1952

9. The first state to introduce VAT was

Bihar
Orissa
Haryana
Kerala

10. The FRBM Act was passed in

1991
2001
2003
2011

11. The government which taxes the least is the best, is the belief of

Mercantilists
Physiocrates
Modern
Classical

12. The Great Depression occurred during

1919-23
1929-33
1949-53
1901-05

13. The idea of ..Democratic Decentralization in India was popularized by

A.D. Gorwala Committee, 1951
B.R. Mehta Committee, 1957
Ashok Mehta Committee, 1978
None of these

14. The ideal system of public Finance is one where the net benefit is

Maximum
Minimum
Zero
Infinity

15. The income of the government through all its sources is called

Public expenditure
public revenue
Public finance
none of these

16. The Indian income tax is

Direct and proportional
Indirect and proportional
Indirect and progressive
Direct and progressive

17. The Indian tax system is

Proportional
Progressive
Regressive
Degressive

18. The item or economic activity on which tax is imposed is known as

Tax buoyancy
tax rate
Excess burden
tax base

19. The Kelkar Proposals are concerned with

Recommendations for reforms in the power sector
Recommendations for tax reforms
Guidelines for the privatization of public sector undertakings
None of the above

20. The Kerala Panchayat Raj Act was passed in the legislature in the year

1995
1994
2000
1999

21. The largest component of revenue expenditure in India is

Pension
Interest payments
Education
Health

22. The largest component of revenue expenditure in India is

Pension
Interest payments
Education
Health

23. The main objective of budgeting is

Planning
Co-ordination
Control
All of these

24. The main objective of taking private loan is

To achieve public objectives
to achieve personal objectives
to achieve long term objectives
none of these

25. The maximum effect of direct taxes is on

Price of food
Income
Capital goods
consumer goods

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

Tax sharing
Grants-in-Aid
Loans
All the above

27. The modern state is

Laissez-faire state
Welfare state
Aristocratic state
Police state

28. The modern theory of tax incidence was developed by

Dalton
Keynes
R A Musgrave
none of these

29. The most accepted theory of taxation in modern times

Benefit theory
Cost of service
Financial Theory
Ability theory

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

Concentration effect
inspection effect
Displacement effect
none of these

Public Economics MCQ Multiple Choice Questions Answers | Quiz for Practice

About Public Economics MCQ Questions

Why Practice Public Economics Objective Questions?

Who Should Use These MCQs?

Public Economics MCQ Questions for Practice

1. The equity principle of taxation was propounded by

2. The existence of economic inequalities among the states is known as

3. The final resting place of the burden of tax is called

4. The Finance Commission does all the following functions except one, which is that?

5. The Finance Commission in India is appointed by

6. The finance commission is appointed every

7. The financial year in India starts from

8. The First Finance Commission was appointed in the year

9. The first state to introduce VAT was

10. The FRBM Act was passed in

11. The government which taxes the least is the best, is the belief of

12. The Great Depression occurred during

13. The idea of ..Democratic Decentralization in India was popularized by

14. The ideal system of public Finance is one where the net benefit is

15. The income of the government through all its sources is called

16. The Indian income tax is

17. The Indian tax system is

18. The item or economic activity on which tax is imposed is known as

19. The Kelkar Proposals are concerned with

20. The Kerala Panchayat Raj Act was passed in the legislature in the year

21. The largest component of revenue expenditure in India is

22. The largest component of revenue expenditure in India is

23. The main objective of budgeting is

24. The main objective of taking private loan is

25. The maximum effect of direct taxes is on

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

27. The modern state is

28. The modern theory of tax incidence was developed by

29. The most accepted theory of taxation in modern times

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

Your Score

Related Quiz Topics

Recent Articles

Looking to post on our portal?

Public Economics MCQ Multiple Choice Questions Answers | Quiz for Practice

About Public Economics MCQ Questions

Why Practice Public Economics Objective Questions?

Who Should Use These MCQs?

Public Economics MCQ Questions for Practice

1. The equity principle of taxation was propounded by

2. The existence of economic inequalities among the states is known as

3. The final resting place of the burden of tax is called

4. The Finance Commission does all the following functions except one, which is that?

5. The Finance Commission in India is appointed by

6. The finance commission is appointed every

7. The financial year in India starts from

8. The First Finance Commission was appointed in the year

9. The first state to introduce VAT was

10. The FRBM Act was passed in

11. The government which taxes the least is the best, is the belief of

12. The Great Depression occurred during

13. The idea of ..Democratic Decentralization in India was popularized by

14. The ideal system of public Finance is one where the net benefit is

15. The income of the government through all its sources is called

16. The Indian income tax is

17. The Indian tax system is

18. The item or economic activity on which tax is imposed is known as

19. The Kelkar Proposals are concerned with

20. The Kerala Panchayat Raj Act was passed in the legislature in the year

21. The largest component of revenue expenditure in India is

22. The largest component of revenue expenditure in India is

23. The main objective of budgeting is

24. The main objective of taking private loan is

25. The maximum effect of direct taxes is on

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

27. The modern state is

28. The modern theory of tax incidence was developed by

29. The most accepted theory of taxation in modern times

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

Your Score

Related Quiz Topics

Recent Articles

Login at Quizforum