[OBJECTIVE]
Subject: Public Finance
Time Allowed: 15 Min
Total Marks: 10
NOTE: ATTEMPT THIS PAPER ON THIS QUESTION SHEET ONLY. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.
Part-I Encircle the correct option, each question carries equal marks. (10)
- The economic incidence of a unit tax is
(a) Generally borne by the buyers.
(b) Generally borne by sellers.
(c) Generally borne by the government.
(d) Independent of the statutory incidence for the tax.
- A public good is
(a) A good that the public must pay lor.
(b) Non rival in consumption.
(c) More costly than a private good.
(d) Paid for by the government.
- Which of the following tax is best example of ability to pay principle of taxes.
(a) Excise tax on cigarettes
(b) Highway toll tax
(c) Proportional sales tax
(d) Personal income tax
- Govt. budget is balanced when:
(a) Govt. expenditure outstrips tax receipts
(b) Govt. tax receipts outstrips expenditure
(c) Government expenditure equals tax revenue
(d) None of the above
- Government finance is called:
(a) National finance
(b) Public finance
(c) Private finance
(d) (a) and (b) of above
- How the government can meet its expenditure:
(a) By taxing people.
(b) By borrowing from banks and other governments
(c) By printing new money
(d) By all the three methods
- Which tax better conforms to the principle of equality in taxation
(a) Progressive tax
(b) Regressive tax
(c) Proportional tax
(d) Fixed tax
- Net taxes are:
(a) Domestic taxes minus foreign taxes
(b) Business taxes minus personal taxes
(c) Total taxes minus govt. transfer payments
(d) Total taxes minus govt. purchases
- Which is not counted as public expenditure?
(a) Subsidy given to local city bus service
(b) Defense expenditure
(c) Investment spending by public companies
(d) Interest payment on national debt.
- Progressive taxes:
(a) Increase government revenue
(b) Bring equality in distribution of incomes
(c) Compel rich people to be honest
(d) (a) & (b) of above