This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the average tax rate declines as income increases A) Progressive tax. B) Regressive tax. C) All are correct. D) Proportional tax. Show Answer Correct Answer: B) Regressive tax. 2. Tax on imported goods is an example of A) Personal income tax. B) Direct tax. C) Indirect tax. D) Company tax. Show Answer Correct Answer: C) Indirect tax. 3. What is the example of transfer payment? A) Unemployment benefits. B) Defense. C) Materials. D) None of above. Show Answer Correct Answer: A) Unemployment benefits. 4. It has to be paid on goods imported from other contries A) Corporation tax. B) Income tax. C) Excise duties. D) Fee. Show Answer Correct Answer: C) Excise duties. 5. The study of public finance also helps in analysis and evaluation of A) Personal policy. B) Corporate policy. C) Public policy. D) All of these. Show Answer Correct Answer: C) Public policy. 6. Revenue deficit is calculated by A) Revenue receipt % Revenue Expenditure. B) Revenue receipt t + Revenue Expenditure. C) Revenue receipt-Revenue Expenditure. D) Revenue receipt * Revenue Expenditure. Show Answer Correct Answer: C) Revenue receipt-Revenue Expenditure. 7. GRANTS FOR STUDENTS in English are: A) Unemployment benefit. B) Social security. C) Student grants. D) Disability allowances. E) Pension. Show Answer Correct Answer: C) Student grants. 8. Which of the following is the purpose of transfer payments? A) Debt servicing. B) Infrastructure spending. C) Tax refunds. D) Social welfare programs. Show Answer Correct Answer: D) Social welfare programs. 9. Direct tax:Income::Indirect tax: ..... A) Property. B) Wealth. C) Goods & services. D) None of above. Show Answer Correct Answer: C) Goods & services. 10. What does the word Public Debt mean? A) Public expenditure. B) Public debt. C) Public finance. D) Public loan. Show Answer Correct Answer: B) Public debt. 11. The economist associated with the principle of Maximum Social Advantage is ..... A) Sweezy. B) Samuelson. C) Seligman. D) Dalton. Show Answer Correct Answer: D) Dalton. 12. The transactions version of the quantity theory of money was provided by the American economist Irving Fisher A) False. B) True. Show Answer Correct Answer: B) True. 13. Zero bases budgeting was first adopted by A) France. B) America. C) England. D) India. Show Answer Correct Answer: B) America. 14. Most transfer payments are ..... A) Government contracts. B) Entitlement programs. C) Military equipments. D) None of above. Show Answer Correct Answer: B) Entitlement programs. 15. In developing countries like India, the governments normally prepare ..... budget. A) Financial budget. B) Balanced budget. C) Deficit budget. D) Surplus budget. Show Answer Correct Answer: C) Deficit budget. 16. Local government organizations such as municipalities can be divided into 3 types, which ones are not? A) Municipality. B) Metropolitan Municipality. C) Metropolitan Municipality. D) Subdistrict Municipality. Show Answer Correct Answer: B) Metropolitan Municipality. 17. More money purchasing less goods and services means A) Deflation. B) Inflation. C) Stagflation. D) None of these. Show Answer Correct Answer: B) Inflation. 18. Public finance is not traditionally considered a branch of the field of economics with specific reference to legal and constitutional aspect of revenue sharing arrangements among spending government units. A) True. B) False. Show Answer Correct Answer: B) False. 19. Democratic Governments do not lead to increase in public expenditure. A) Disagree. B) Agree. Show Answer Correct Answer: A) Disagree. 20. I paid the assistant and took the books but then stupidly left the bookshop without waiting for my ..... A) Refund. B) Change. C) Cash. D) Fee. Show Answer Correct Answer: B) Change. 21. ..... are the expenditures of the government for the maintenance of the existing infrastructures, to maintain law and order, defence, etc A) Capital expenditures. B) Current expenditures. C) Non-Developmental expenditures. D) Developmental expenditures. Show Answer Correct Answer: B) Current expenditures. 22. Which of the following state enterprises lost the most in 2019? A) Zoo Organization. B) Thai Airways. C) State Railway of Thailand. D) Bangkok Mass Transit Authority. Show Answer Correct Answer: B) Thai Airways. 23. Erin couldn't buy her outfit because of ..... A) Sales taxes. B) Capital gains taxes. C) Excise taxes. D) None of above. Show Answer Correct Answer: A) Sales taxes. 24. To put money into the bank A) Finance. B) Deposit. C) Withdrawal. D) Spending. Show Answer Correct Answer: B) Deposit. 25. ..... Deficit gives the amount needed by the government to meet its total resource gap. A) Monetary. B) Fiscal. C) Budget. D) None of above. Show Answer Correct Answer: B) Fiscal. 26. A ..... is created by the government and gradually accumulated every year by setting aside a part of current public revenue in such a way that it would be sufficient to pay off the funded debt at the time of maturity. A) Redemption. B) Sinking fund. C) Capital Levy. D) Refunding. Show Answer Correct Answer: B) Sinking fund. 27. This recognizes and rewards good performance among government employees to help improve the efficiency of service across all government institutions. A) Credit System. B) Performance-Based Incentives. C) Leave Credits. D) Output-Based Allowances. Show Answer Correct Answer: B) Performance-Based Incentives. 28. An income tax is considered to be a/an ..... A) Direct tax. B) Indirect tax. C) Both. D) None of above. Show Answer Correct Answer: A) Direct tax. 29. Which of the following is a negative consequence of inadequate taxation? A) Decreased government corruption. B) Reduced public goods and services. C) Increased economic growth. D) Increased public debt. Show Answer Correct Answer: B) Reduced public goods and services. 30. Developmental expenditure:expenditure on health::non-developmental expenditure: ..... A) War expenditure. B) Expenditure on education. C) Industrial development. D) None of above. Show Answer Correct Answer: A) War expenditure. ← PreviousNext →Related QuizzesFinance QuizzesPublic Finance Quiz 1Public Finance Quiz 2Public Finance Quiz 3Public Finance Quiz 4Public Finance Quiz 5Public Finance Quiz 6Public Finance Quiz 7Public Finance Quiz 8Public Finance Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books