MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Public goods are those for which |
| A. | external costs exist. |
| B. | individuals who do not pay cannot be excluded from consuming. |
| C. | individuals who do not pay can be excluded from consuming. |
| D. | no external costs exist. |
| Answer» C. individuals who do not pay can be excluded from consuming. | |
| 2. |
When consumption of a good is non-rival and non-excludable, the good is a |
| A. | public good. |
| B. | mixed good. |
| C. | private good. |
| D. | service. |
| Answer» B. mixed good. | |
| 3. |
The provision of public goods requires |
| A. | competition among firms in the market |
| B. | lobbying |
| C. | trade protection |
| D. | none of the above. |
| Answer» E. | |
| 4. |
The “Tragedy of the Commons†is |
| A. | discovery of corruption among members of the british parliament. |
| B. | exhaustion of resources that are collectively owned. |
| C. | outrageous crime in a boston public park. |
| D. | play by arthur miller. |
| Answer» C. outrageous crime in a boston public park. | |
| 5. |
Which of the following is a public good? |
| A. | house. |
| B. | traffic sign. |
| C. | both of the above. |
| D. | none of the above |
| Answer» D. none of the above | |
| 6. |
A negative externality is |
| A. | conflict relation with a foreign country |
| B. | deficit in external trade |
| C. | hurting effect of a private action on other people |
| D. | rain outdoors. |
| Answer» D. rain outdoors. | |
| 7. |
Wisemanâ€Peacock hypothesis supports in a much stronger manner the possibility of: |
| A. | an upward trend in public expenditure |
| B. | a downward trend in public expenditure |
| C. | a constancy of public expenditure |
| D. | a mixed trend in public expenditure |
| Answer» B. a downward trend in public expenditure | |
| 8. |
The Indian income tax is: |
| A. | direct and proportional |
| B. | indirect and proportional |
| C. | indirect and progressive |
| D. | direct and progressive |
| Answer» E. | |
| 9. |
The main objective of budgeting is: |
| A. | planning |
| B. | coâ€ordination |
| C. | control |
| D. | all of these |
| Answer» E. | |
| 10. |
Which one of the following is the most acceptable theory of taxation: |
| A. | benefit theory |
| B. | cost of service theory |
| C. | ability to pay theory |
| D. | none of these |
| Answer» D. none of these | |
| 11. |
The modern state is: |
| A. | laissez–faire state |
| B. | welfare state |
| C. | aristocratic state |
| D. | police state |
| Answer» C. aristocratic state | |
| 12. |
The system of assigning the source of revenue to the Central as well as State Governments is generally referred to as |
| A. | public finance |
| B. | distributive finance |
| C. | unitary finance |
| D. | federal finance |
| Answer» C. unitary finance | |
| 13. |
A multilevel decentralized fiscal system involving sharing of fiscal responsibilities between central, state and local governments is referred to as: |
| A. | fiscal union |
| B. | fiscal federalism |
| C. | fiscal equalisation |
| D. | fiscal generalism |
| Answer» C. fiscal equalisation | |
| 14. |
Existence of Centre State economic inequalities is known as |
| A. | vertical imbalance |
| B. | horizontal imbalance |
| C. | parallel imbalance |
| D. | none of these |
| Answer» B. horizontal imbalance | |
| 15. |
Identify the Capital Receipts |
| A. | penalty |
| B. | corporation tax |
| C. | dividends on investments made by the government |
| D. | sale of a public sector undertaking |
| Answer» E. | |
| 16. |
Which one of the following is not the form of Tax Revenue? |
| A. | income tax |
| B. | sales tax |
| C. | license fee |
| D. | excise duty |
| Answer» D. excise duty | |
| 17. |
Which of the following is a Capital Receipt? |
| A. | profit tax |
| B. | railway ticket fare |
| C. | fee of the government hospital |
| D. | borrowing from the public |
| Answer» E. | |
| 18. |
Which of the following is a Revenue Receipt? |
| A. | loan from the imf |
| B. | grant received from the world bank |
| C. | borrowing from the public |
| D. | sale of the shares held by the government in hmt |
| Answer» C. borrowing from the public | |
| 19. |
Fiscal Crisis was carried in ................. period. |
| A. | planning |
| B. | new economic policy |
| C. | before indpendence |
| D. | none of these |
| Answer» B. new economic policy | |
| 20. |
Public debt in Indian Economy is .................... in nature. |
| A. | increasing |
| B. | decreasing |
| C. | constant |
| D. | none of these |
| Answer» B. decreasing | |
| 21. |
In internal debt ................ are important. |
| A. | external loans |
| B. | market loans |
| C. | personal loans |
| D. | none of these |
| Answer» C. personal loans | |
| 22. |
............ tax is in the jurisdiction of the Central government. |
| A. | land revenue |
| B. | corporation tax |
| C. | excise on alcohol |
| D. | tax on electricity consumption |
| Answer» C. excise on alcohol | |
| 23. |
The value of balanced budget multiplier is always ................ |
| A. | 0 |
| B. | 1 |
| C. | 2 |
| D. | indefinite |
| Answer» C. 2 | |
| 24. |
In a concept of budgetary deficit, ............... is always greater than the total revenue. |
| A. | public expenditure |
| B. | taxes amount |
| C. | money supply |
| D. | crr |
| Answer» B. taxes amount | |
| 25. |
Public debt is the debt owed by ................ |
| A. | industry |
| B. | individual |
| C. | central government |
| D. | bank |
| Answer» D. bank | |
| 26. |
................... budget concept was first introduced in USA in 1964. |
| A. | zero-base |
| B. | no zero-base |
| C. | surplus base |
| D. | none of these |
| Answer» B. no zero-base | |
| 27. |
Balanced budget means ................ between revenue and expenditure. |
| A. | balance |
| B. | unbalance |
| C. | unequal |
| D. | none of these |
| Answer» B. unbalance | |
| 28. |
Social marginal productivity criteria was developed by ........... |
| A. | malthus |
| B. | a. e. khan |
| C. | a. k. sen |
| D. | none of these |
| Answer» C. a. k. sen | |
| 29. |
Pure theory of public expenditure is based on .............. |
| A. | benefit |
| B. | loss |
| C. | profit |
| D. | none of these |
| Answer» B. loss | |
| 30. |
Wiseman-Peacock was studied expenditure of .............. in 1890-1955. |
| A. | ussr |
| B. | usa |
| C. | uk |
| D. | none of these |
| Answer» D. none of these | |
| 31. |
Wagner’s Law of increasing ............ activities. |
| A. | central |
| B. | state |
| C. | local |
| D. | one of these |
| Answer» C. local | |
| 32. |
The theory of second best was introduced by ............... |
| A. | lipse and lancester |
| B. | allen and hicks |
| C. | samuelson and hicks |
| D. | horrod and dommor |
| Answer» B. allen and hicks | |
| 33. |
Non-rival consumption is the feature of .............. |
| A. | public good |
| B. | private good |
| C. | merit good |
| D. | necessary good |
| Answer» B. private good | |
| 34. |
The concept of Merit goods was developed by ................ |
| A. | musgrave |
| B. | marshall |
| C. | adam smith |
| D. | zak |
| Answer» B. marshall | |
| 35. |
External loans are raised from |
| A. | idbi |
| B. | icici |
| C. | rbi |
| D. | wto |
| Answer» E. | |
| 36. |
Debts that are repaid at some specific future date are known as |
| A. | redeemable debts |
| B. | irredeemable debts |
| C. | treasury bill |
| D. | none of the above |
| Answer» B. irredeemable debts | |
| 37. |
External debts can be raised from ........... |
| A. | individuals |
| B. | rbi |
| C. | commercial banks |
| D. | world bank |
| Answer» E. | |
| 38. |
Productive debts are utilized for ........ |
| A. | transfer payments in form of subsidies |
| B. | they are raised for financing wars |
| C. | they add to productive capacity of the economy |
| D. | special incentives to weaker sections |
| Answer» C. they add to productive capacity of the economy | |
| 39. |
An empirical law to the effect of growing public expenditure was propounded by |
| A. | wagner |
| B. | peacock |
| C. | wiseman |
| D. | none of these |
| Answer» B. peacock | |
| 40. |
The theory of fiscal federalism assumes – |
| A. | a federal system of government can be efficient and effective in solving problems. |
| B. | a federal government will be able to bring about economic stability allocation of resources. |
| C. | since states and localities are not equal in their income, federalism is helpful. |
| D. | all of the above |
| Answer» E. | |
| 41. |
The term fiscal federalism was introduced by |
| A. | dalton |
| B. | seligman c |
| C. | musgrave |
| D. | none of the above |
| Answer» D. none of the above | |
| 42. |
Pick out the item which is not a part of tax revenue. |
| A. | interest |
| B. | corporate tax |
| C. | excise |
| D. | customs |
| Answer» B. corporate tax | |
| 43. |
Which is / are the advantages of redemption of debt. |
| A. | saves the government from bankruptcy |
| B. | reduces cost |
| C. | saves future generation from the pressure of public debt |
| D. | all of the above |
| Answer» E. | |
| 44. |
The term incidence of taxation refers to ..... |
| A. | initial burden of the tax |
| B. | final burden of the tax |
| C. | burden of tax on government |
| D. | none of the above |
| Answer» C. burden of tax on government | |
| 45. |
Debts which have to be paid at some specific future date are known as |
| A. | redeemable debts |
| B. | irredeemable debts |
| C. | treasury |
| D. | none of the above |
| Answer» B. irredeemable debts | |
| 46. |
Direct tax are………….. in nature. |
| A. | progressive |
| B. | equitable |
| C. | regressive |
| D. | none of the above |
| Answer» B. equitable | |
| 47. |
Generally, the nature of indirect tax is …………… |
| A. | progressive |
| B. | regressive |
| C. | proportional |
| D. | none of the above |
| Answer» C. proportional | |
| 48. |
Which of the following is administrative non-tax revenue? |
| A. | fees |
| B. | gifts |
| C. | grants |
| D. | profits of govt. enterprises |
| Answer» B. gifts | |
| 49. |
Which of the following is not an indirect tax? |
| A. | sales tax |
| B. | custom duty |
| C. | excise duty |
| D. | gift tax |
| Answer» E. | |
| 50. |
Which of the following is not a direct tax? |
| A. | personal income tax |
| B. | service tax |
| C. | wealth tax |
| D. | corporate income tax |
| Answer» C. wealth tax | |