Public Revenue MCQ Multiple Choice Questions Answers | Quiz for Practice

Q: 1. The objective of taxation by the Government are

Correct Answer is: All of the above

Q: 3. Transfer Payments include

Correct Answer is: Corporate Income tax

Q: 6. On what broad aspect of commodities are indirect taxes imposed

Correct Answer is: All of the above

Q: 7. The following is not a characteristic of a tax

Correct Answer is: There is a quid-pro-quo between the tax payer and the Government

Q: 8. The following is a characteristic of indirect tax

Correct Answer is: The impact and incidence are not on the same person.

Q: 9. The following is a characteristic of a direct tax

Correct Answer is: The impact and incidence are on the same person

Q: 11. Special assessment is also known as

Correct Answer is: Battement Levy

Q: 12. Impact of a tax refers to

Correct Answer is: Immediate money burden

Q: 13. After levying of a tax, if the price does not rise at all, it means that

Correct Answer is: Any of the above

Q: 14. Which factor has no role in the shifting of a tax?

Correct Answer is: Income of the consumer

Public Revenue Multiple Choice Questions (MCQs) are essential for students and exam aspirants to test their understanding and prepare effectively for assessments and interviews.

About Public Revenue MCQ Questions

Public Revenue MCQs cover key concepts such as taxation, government expenditure, fiscal policy, and revenue generation. These questions help in understanding how governments manage financial resources and ensure economic stability.

Why Practice Public Revenue Objective Questions?

Practicing Public Revenue MCQs offers several benefits. It helps in reinforcing your knowledge, improving your problem-solving skills, and preparing for school or college exams, competitive exams, and job interviews. Regular practice ensures that you are well-versed with the subject matter and can confidently answer questions in various formats.

Who Should Use These MCQs?

Students preparing for school or college exams
Competitive exam aspirants
Candidates preparing for interviews

Public Revenue MCQ Questions for Practice

1. The objective of taxation by the Government are

Raising revenue for the state
To maintain economic stability
To remove disparities in the distribution of income
All of the above

2. Which of the following is not a direct tax?

Personal Income Tax
Service tax
Wealth Tax
Corporate Income Tax

3. Transfer Payments include

Old Age Pension
Subsidies
Wealth Tax
Corporate Income tax

4. The following is an example of commercial non-tax revenue

Gifts and Grants
Fees
Fines
Surpluses

5. The following is an example of administrative non-tax revenue

Surplus of public undertaking
Gifts
Fees
Grants

6. On what broad aspect of commodities are indirect taxes imposed

Production
Sales
Movement
All of the above

7. The following is not a characteristic of a tax

It is a compulsory payment
Every tax involves a sacrifice by tax payer
There is a quid-pro-quo between the tax payer and the Government
Refusal to pay tax is a punishable offence

8. The following is a characteristic of indirect tax

The impact and incidence are not on the same person.
It is levied on income.
Taxes are progressive in nature.
All of the above

9. The following is a characteristic of a direct tax

Incidence may be shifted
Imposes more burden on poor
The impact and incidence are on the same person
All of the above

10. In India service tax was introduced in

1991-92
1994-95
1999-2000
2005-06

11. Special assessment is also known as

Tax Revenue
Battement Levy
VAT
None of the above

12. Impact of a tax refers to

Final money burden
Immediate money burden
Indirect real burden
None of the above

13. After levying of a tax, if the price does not rise at all, it means that

Incidence of the tax remains with producer
Tax has been shifted backward
Shifting has taken place
Any of the above

14. Which factor has no role in the shifting of a tax?

Change in prices
Elasticity of demand and supply
Nature of Demand
Income of the consumer

15. Pick out the statement which is not true with regard to tax shifting

A purely local tax can be shifted if it is heavy.
A purely local tax shifted if it is light
Shifting becomes difficult if the people purchase from outside the locality
None of the above

16. Pick out the incorrect statement.

In the short period, shifting of a tax is easy
In the long period shifting of a tax is easy
When supply is elastic, shifting is easy
None of the above

17. Pick out the tax which is not a part of indirect tax

Excise Duty
Sales Tax
Entertainment Tax
Corporate Tax

18. Pick out the characteristic which is not true of direct tax

Simplicity
Elasticity
Creates Civic Consciousness
Encourages savings and investment

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

Convenience
Tax evasion is difficult
Fair to the poor
Powerful tool of economic policy

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

Unjust to poor
Inflationary in nature
A tool of economic policy
High administrative cost

21. An ad valorem tax is charged according to the

Value of a commodity
Weight of the commodity
Size of the commodity
None of the above

22. Specific duty is charged according to

Value of a commodity
Weight of the commodity
Size of the commodity
None of the above

23. An example of direct tax is

Sales tax
Central excise duty
Custom duty
Wealth tax

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

Progressive Tax
Proportion Tax
Regressive Tax
Digressive Tax

25. Generally, the nature of indirect tax is

Progressive
Regressive
Proportional
None of the above

26. Direct tax are..........................in nature

Progressive
Equitable
Regressive
None of the above

27. An increase in the direct tax means it is

Inflationary
Anti-inflationary
Having no impact on price
None of the above

28. The term impact of taxation means

Initial burden of the tax
Ultimate burden of the tax
Burden of tax on government
None of the above

29. The term incidence of taxation refers to

Initial burden of the tax
Final burden of the tax
Burden of tax on government
None of the above

30. The ultimate burden of taxation on producer implies

Inelastic Supply and Elastic Demand
Elastic Supply and Demand
Inelastic Supply and Demand
Elastic Supply and Inelastic Demand