MCQ’s for the subject of Public Finance

Sem-3 JPS SIR

1. Which of the following is a union tax?

a. Corporation tax b. Taxes on agricultural income

c. Capitation taxes d. Land revenues

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

a. Taxes on railway freights and fares b. Stamp duties on financial documents

c. Tolls d. A and b only

3. The tax levied by the union government on income of individuals is known as

a. Personal income tax b. Interest tax

c. Wealth tax d. Corporation tax

4. The tax on net income of companies is

a. Personal income tax b. Interest tax

c. Wealth tax d. Corporation tax

5. The most important source of revenue to the states is

a. Sales tax b. Service tax

c. Excise duty d. None of the above

6. Pension of the retired employees of the government is included in …….

a..Capital Expenditure b. Revenue Expenditure

c. Investment Expenditure d. Social Expenditure

7. To prepare a deficit budget, taxes should be ……….

a. Redused b. Increased
c. Changed d. Kept Steady

8. Tax payment is ……….

a. Voluntary b. Compulsory
c. Deferred d. Illegal

9. What number of types taxes are there according to incidence…………

a. Two b. Three c. Four d. Five

10. Types of taxes according to tax rate.

a. Two b. Three c. Four d. Five

11. To reduce tax burden through tax planning is ………

a. Tax Evasion b. Tax Incidence

c. Tax Avoidance d. Tax Shifting

12. Under which situation, deficit budget is desirable?

a. Depression b. Boom c. Inflation d. Prosperity

13. If the impact and incidence are on different persons, the tax is called…..

a. Progressive b. Direct c. Indirect d. Proportionate

14. Excise duty on T. V. sets is an example of ………

a. Indirect tax b. Direct tax c. Progressive d. Proportionate tax

15. Public Finance relates to Finance of ……

a. An individual b. Pubic Authority c. Business man d. Traders

16. Which is not the subject matter of public finance.

a. Public Revenue b. Public Expenditure c. Public Debt d. Private Finance

17. _____________ finance aims at profit motive.

a. Private b. Public c. Central Government d. State Government

18. ____________ Expenditure is always pre-sanctioned.

a. Private b. Family c. An Individual d. Public

19. In India the Budget is presented by _____________.

a. The President b. The Prime Minister c. The Finance Minister d. Governer

20. ____________ is the major source of Public Revenue.

a. Special Assessment b. Tax c. Priced. Fee

21. A budget in which anticipated Revenue and proposed expenditure are unequal.

a. Balanced b. Deficit c. Surplus d. None

22. Payment made for the purpose of getting education is __________.

a. Tax b. Fees c. Priced. Special Assessment

23. Taxes are ___________.

a. Voluntary b. Compulsory c. Optional d. None

24. _____________ taxes are progressive.

a. Direct b. Indirect c. Ad Valorem d. Specific

25. _________ taxes are regressive in nature

a. Direct b. Indirect c. Proportional d. Equal

26. ______________ taxes are elastic.

a. Direct b. Indirect c. Sales d. VAT

27. ____________ taxes can be legally shifted.

a. Direct b. Indirect c. Both a & b d. None

28. Which is the example of Indirect Tax?

a. Wealth tax b. Income tax c. Excise Duty d. Corporation tax

29. Progressive Tax system helps to reduce _____________.

a. Standard of living b. Supply of goods c. Inequality of income d. None

30. ______________ is the example of Direct Tax.

a. Corporation Tax b. Sales Tax c. Import Duty d. Excise Duty

31. GST refers to _____________.

a. Garib Sarkar Tax b. Gabbar Sing Tax c. Goods and Services Tax d. None