This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. For the government to perform its various functions such as maintaining law and providing healthcare it need ..... to reap the maximum benefits with the available public wealth. A) The distribution function. B) The stabilization function. C) The allocation function. D) All of the above. Show Answer Correct Answer: C) The allocation function. 2. In this process, the departments and agencies are tasked to partner with civil society organizations as they prepare their budget proposals. A) Veto Message. B) Bicameral Deliberation. C) Stakeholder Engagement. D) House Deliberation. Show Answer Correct Answer: C) Stakeholder Engagement. 3. Which one of the following is wrong about central budjet in India? A) Prime minister presents the Budget in Loksabha. B) Government should get the approval of parliament to the Budget before 31st of March. C) Budget for next financial year is prepared during the current year itself. D) Parliament approves the central budget. Show Answer Correct Answer: A) Prime minister presents the Budget in Loksabha. 4. A tax on certain things that are made, sold, or used within a country? A) Payroll taxes (Federal FICA deducted from your check). B) Personal income tax. C) Excise tax. D) Corporate income taxes. Show Answer Correct Answer: C) Excise tax. 5. The policy interest rate is a part of which policy? A) Trade policy. B) Monetary policy. C) Tax policy. D) Fiscal policy. Show Answer Correct Answer: B) Monetary policy. 6. Is defined as condition in which individuals who exercise power are constrained by external means and by internal norms. It refers to the institution of checks and balances in an organization thru which an administrator accounts for his stewardship of resources or authority. A) Executive. B) Accountability. C) Fiscal Policy. D) Monetary Policy. Show Answer Correct Answer: B) Accountability. 7. Which is not an important actor in the economic flow system? A) Financial institution sector. B) Foreign Affairs Sector. C) Labor union sector. D) Government sector. Show Answer Correct Answer: C) Labor union sector. 8. Which of the following is an example of a transfer payment of public finance in the Philippines? A) Payment of salaries to government employees. B) Construction of a new bridge. C) Purchase of equipment for a government agency. D) Conditional cash transfers to poor families. Show Answer Correct Answer: D) Conditional cash transfers to poor families. 9. Functional Finance concept was introduced by: A) Marx and Angels. B) Keynes and Lerner. C) Dalton and Pigou. D) J.S. Mill. Show Answer Correct Answer: B) Keynes and Lerner. 10. Dalton considers incidence as the ..... of tax on the person who ultimately pays it. A) Direct money burden. B) Indirect money burden. C) Formal tax incidence. D) Effective tax incidence. Show Answer Correct Answer: A) Direct money burden. 11. The revenue generated by the government through taxes and non-tax sources is called A) Capital receipts. B) Revenue receipts. C) Public debit. D) None of the above. Show Answer Correct Answer: B) Revenue receipts. 12. Duties levied on goods produced within the country A) Estate duties. B) Service tax. C) Excise duties. D) Custom duties. Show Answer Correct Answer: C) Excise duties. 13. What government policy is the relief measure for people affected by COVID-19 directly related to? A) Fiscal policy. B) Monetary policy. C) Government revenue policy. D) Government borrowing policy. Show Answer Correct Answer: A) Fiscal policy. 14. The first aspect of a good tax is that it must ..... A) Be efficient. B) Provide a good reason for collection. C) Be on schedule. D) None of above. Show Answer Correct Answer: A) Be efficient. 15. State enterprises can be classified into 8 branches according to their economic characteristics. But which of the following is not? A) Science and Technology field. B) Energy field. C) Industrial field. D) Public utilities branch. Show Answer Correct Answer: A) Science and Technology field. 16. Which of the following taxes is imposed on the transfer of certain documents, such as contracts and deeds? A) Excise tax. B) Documentary stamp tax. C) Value-added tax. D) None of above. Show Answer Correct Answer: B) Documentary stamp tax. 17. The fiscal authorities clear off a part of the public debt every year by issuing ..... to the bond-holders which mature annually. A) Terminable annuities. B) Surplus Balance of Payments. C) Additional Taxation. D) Shares. Show Answer Correct Answer: A) Terminable annuities. 18. Public Finance does not mean raising of public revenues, making of government expenditures and issuing of bonds to have private debt. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 19. To buy in the large quantity of sth A) In bulka. B) Outright. C) Bargain. D) In bulk. Show Answer Correct Answer: D) In bulk. 20. Types of indirect taxes A) Land tax, inheritance tax, interest tax, property tax. B) Trade taxes, excise taxes, customs taxes, entertainment duties, spending taxes. C) Social security tax Petroleum Income Tax. D) All correct. Show Answer Correct Answer: B) Trade taxes, excise taxes, customs taxes, entertainment duties, spending taxes. 21. Payroll taxes are paid only by employers A) False. B) True. Show Answer Correct Answer: A) False. 22. If both income and expenditure are equal, it is called as A) Surplus budget. B) Balanced budget. C) Financial budget. D) Deficit budget. Show Answer Correct Answer: B) Balanced budget. 23. What does imact lag mean? A) This refers to the time that it takes the government to figure out that the economy is not working at its potential output. B) This refers to the time that it takes for a fiscal stimulus to flow through the economy and generate the changes in spending pattern that are desires. C) The governement might have recognized the need for action, but its implementataion may be delayed in obtaining necessary approvals. D) None of above. Show Answer Correct Answer: B) This refers to the time that it takes for a fiscal stimulus to flow through the economy and generate the changes in spending pattern that are desires. 24. A government budget is said to be a surplus budget if the expected government revenues exceed the estimated government expenditure in a particular financial year. A) Balanced Budget. B) Deficit Budget. C) Imbalanced Budget. D) Surplus Budget. Show Answer Correct Answer: D) Surplus Budget. 25. Refer to funds obtained from repayable sources, such as loans secured by the government from the financial institutions and other sources, both domestic and foreign, to finance various government projects and activities A) Public Borrowings. B) Revenues. C) Accounts Payable. D) Public Disposition. Show Answer Correct Answer: A) Public Borrowings. 26. Which of the following agencies is responsible for collecting taxes from individuals and businesses in the Philippines? A) Bureau of Internal Revenue (BIR). B) Department of Budget and Management (DBM). C) Department of Finance (DOF). D) Land Bank of the Philippines (LBP). Show Answer Correct Answer: A) Bureau of Internal Revenue (BIR). 27. In which of the following situations should monetary policy be used? "There has been heat in the economy and the price of goods has increased causing people to spend more than the production capacity of the economy." A) Strict monetary policy. B) Accommodative monetary policy. C) Adaptive monetary policy. D) Flexible monetary policy. Show Answer Correct Answer: A) Strict monetary policy. 28. What is the first types of budgeting system implemented in Malaysia A) British line budgeting system. B) Line item budgeting system. C) Itemized budgeting system. D) Object budgeting system . Show Answer Correct Answer: B) Line item budgeting system. 29. The structure and proportion of government revenue is most consistent with which of the following? A) Tax income 70%, non-tax income 30%. B) Tax revenue 90% Non-tax income 10%. C) Tax income 80%, non-tax income 20%. D) Tax income 60%, non-tax income 40%. Show Answer Correct Answer: B) Tax revenue 90% Non-tax income 10%. 30. Which is not the solution for externality internalization? A) Copyright. B) Property rights. C) Corrective subsidies. D) Corrective taxes. Show Answer Correct Answer: A) Copyright. ← 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