This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What would cause an expansionary fiscal policy to be relatively ineffective? A) A low marginal propensity to import. B) Large-scale unemployment of resources. C) A fixed exchange rate. D) A fixed money supply. Show Answer Correct Answer: C) A fixed exchange rate. 2. Financial Year in India is from ..... to ..... A) April 1st to March 31st. B) January 1st to December 31st. C) March 1st to April 30th. D) December 1st to January 31st. Show Answer Correct Answer: A) April 1st to March 31st. 3. Which school of thought emphasizes and gives importance to economic growth? A) Neoclassical school. B) Classical school. C) Marxist office. D) Keynesian school. Show Answer Correct Answer: A) Neoclassical school. 4. A prime example of a regressive tax is a ..... A) Sales tax. B) Property tax. C) Inheritance tax. D) None of above. Show Answer Correct Answer: A) Sales tax. 5. Government revenue from non-tax contribution are below, except A) Petroleum and gas royalties. B) Treasury bills, bonds and loans. C) Sales of goods and services. D) Import duties. Show Answer Correct Answer: D) Import duties. 6. Public expenditure helps to reduce income inequality. A) True. B) False. Show Answer Correct Answer: A) True. 7. What is regressive tax? A) Tax rate varies positively with income. B) Tax rate varies inversely with income. C) Tax rate is not dependence on income. D) None of the above. Show Answer Correct Answer: B) Tax rate varies inversely with income. 8. Salaries, wages and maintenance falls under ..... A) Royalties. B) Recurrent expenditure. C) Capital expenditure. D) Tolls. Show Answer Correct Answer: B) Recurrent expenditure. 9. If the state has the power to set the price of all goods and services in the economy, which of the following will be the case? A) Market economy system. B) Mixed economy system. C) Mechanistic economic system. D) Manipulative economic system. Show Answer Correct Answer: D) Manipulative economic system. 10. Presidential Decree No. 72/2020 is the legal basis that allows a budget deficit of.....of GDP A) 4, 36%. B) 3%. C) 6, 34%. D) 5, 07%. Show Answer Correct Answer: C) 6, 34%. 11. It was a tax during the time of Field Marshal Plaek Pibulsongkram. The government had a policy to increase the population. In 1942, a law was passed to collect this type of tax. It is prescribed for men between the ages of 20 and 60 years, if they are not clergy or infirm people. If you are not married, you must pay tax of 5 baht per year. A) Single man tax. B) Masculinity tax. C) Thai man tax. D) Stupid man's tax. Show Answer Correct Answer: A) Single man tax. 12. Parliament's budget work is open and apparent A) Openness principle. B) Operability principle. C) Cohesion principle. D) Entireness principle. Show Answer Correct Answer: A) Openness principle. 13. Which is not an indirect tax? A) Permissible type of tax. B) Specific business tax. C) Specific expansion tax. D) Corporate income tax. Show Answer Correct Answer: D) Corporate income tax. 14. What is the main difference between public finance and private finance? A) Public finance deals with the finances of individuals, while private finance deals with the finances of governments. B) Public finance deals with the finances of governments, while private finance deals with the finances of individuals and businesses. C) Public finance deals with international finances, while private finance deals with domestic finances. D) There is no difference between public finance and private finance. Show Answer Correct Answer: B) Public finance deals with the finances of governments, while private finance deals with the finances of individuals and businesses. 15. Which government agency is responsible for regulating the insurance industry in the Philippines? A) Insurance Commission. B) Securities and Exchange Commission. C) Department of Trade and Industry. D) Philippine Competition Commission. Show Answer Correct Answer: A) Insurance Commission. 16. Interest corresponds to which of the following in economics and finance? A) Tax rate. B) Inequality rate. C) Interest rate. D) Exchange rate. Show Answer Correct Answer: C) Interest rate. 17. "The government which taxes the least is the best" , is the belief of: A) Physiocrates. B) Classical. C) Mercantilists. D) Modern. Show Answer Correct Answer: B) Classical. 18. Identify which is FALSE about Public Finance A) It is concerned with the income and expenditure of public authorities and with the adjustment of one to the other. B) It is the study of the effects of budgets on the economy, particularly the effect on the achievement of the major economic objects-growth, stability, equity and efficiency. C) It deals with the question how the Government raises its resources to meet its ever-rising expenditure. D) None of the above. Show Answer Correct Answer: D) None of the above. 19. The term "commercial state" in revenue from commercial state What type of agency is this? A) Special form of government agency. B) Independent state organization. C) State enterprise. D) Public organization. Show Answer Correct Answer: C) State enterprise. 20. Which of the following is an example of how taxes can affect economic efficiency? A) Increasing tax rates on cigarettes to reduce smoking. B) Implementing tax incentives to encourage investments. C) Levying taxes on luxury goods to increase government revenue. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. All are common characteristics of developing economies, except: A) Low level of income and consumption. B) Poor quality of life. C) Basic needs of all people are met. D) High unemployment and poverty. Show Answer Correct Answer: C) Basic needs of all people are met. 22. Choose correct option! A) Personal Income Tax:Indirect Tax Paid By Individual. B) Corporate tax:direct Tax Paid By Corporate. C) Indirect Tax:Non Transferrable tax. D) Direct Tax:Transferrable tax. Show Answer Correct Answer: B) Corporate tax:direct Tax Paid By Corporate. 23. The definition of Scarcity is ..... A) An unlimited amount of resources to meet limited wants and needs. B) A limited amount of resources to meet unlimited wants and needs. C) When people use time and energy to create events. D) A city where individuals commit themselves to unlimited wants and needs. Show Answer Correct Answer: B) A limited amount of resources to meet unlimited wants and needs. 24. It is the final step of the budget execution phase. A) Disbursement. B) Cash Allocation. C) Incurring Obligations. D) Allotment Release. Show Answer Correct Answer: A) Disbursement. 25. If your bank account is overdrawn, you are in the ..... A) White. B) Black. C) Blue. D) Red. Show Answer Correct Answer: D) Red. 26. Which of the following refers to a tax in which the taxpayer does not bear all or most of the burden of that tax? Taxpayers can pass on all or most of their tax burden to others. A) Specific product tax. B) Indirect taxes. C) D. Consumer tax. D) Direct tax. Show Answer Correct Answer: B) Indirect taxes. 27. ..... are the expenditure of the government for the maintenance of existing infrastructures, to maintain law and order, defense, etc ..... A) Current expenditure. B) Capital expenditure. C) Public revenue. D) All of the above. Show Answer Correct Answer: A) Current expenditure. 28. Which of the following is an example of government expenditure? A) Construction of a new highway. B) Purchase of a new car by an individual. C) Payment of a salary to an employee by a private company. D) All of the above. Show Answer Correct Answer: A) Construction of a new highway. 29. What budget policy does Keynesian propose to use when unemployment occurs? A) Budget deficit. B) Balanced budget. C) Balanced budget. D) Budget surplus. Show Answer Correct Answer: A) Budget deficit. 30. Which school of thought firmly believes in market mechanisms? A) Neoclassical school. B) Marxist office. C) Keynesian School. D) Classical school. Show Answer Correct Answer: D) Classical school. Next →Related QuizzesFinance QuizzesPublic Finance Quiz 2Public Finance Quiz 3Public Finance Quiz 4Public Finance Quiz 5Public Finance Quiz 6Public Finance Quiz 7Public Finance Quiz 8Public Finance Quiz 9Public Finance Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books