This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The three components of Aspirational India include all of the following EXCEPT: A) Agriculture, Irrigation, and Rural Development. B) Wellness, Water, and Sanitation. C) Industrial Development. D) Education and Skills. Show Answer Correct Answer: D) Education and Skills. 2. Redistribution of income and wealth is the A) Transfer of income and wealth (including physical property) from some individuals to others. B) All are correct. C) Occurs by means of a social mechanism such as taxation, charity, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law. D) None of above. Show Answer Correct Answer: B) All are correct. 3. It is the major element of financial data activity that rests in the act. A) BUDGETING. B) PLANNING. Show Answer Correct Answer: A) BUDGETING. 4. Government generally impose higher taxes on rich, moderate taxes on the not-so-rich and exempt the poor from paying taxes. This principal of taxation is called ..... A) Heavy taxation policy. B) Protective taxation policy. C) Direct taxation policy. D) Progressive taxation policy. Show Answer Correct Answer: D) Progressive taxation policy. 5. Personal income tax is paid at the rate of 5-35 percent of net income. What are the characteristics of the tax rate? A) Progressive tax rate. B) Equal tax rate. C) Regressive tax rates. D) Fixed tax rate. Show Answer Correct Answer: A) Progressive tax rate. 6. Public Finance becomes an art when the outputs of science are used, learned and applied, or when common sense and practicability are put into use whenever public resources are generated, allocated and spent. A) False. B) True. Show Answer Correct Answer: B) True. 7. The monetary base corresponds to which of the following? A) What. B) M0. C) M1. D) One hundred. Show Answer Correct Answer: B) M0. 8. US Tax Structure is ..... A) Federal tax system is progressive. B) All are correct. C) The state and local tax structures are largely regressive. D) The overall U.S. tax system is progressive. Show Answer Correct Answer: B) All are correct. 9. The deficit financing has been proved to be a sucessful instrument of quick economic development. A) False. B) True. Show Answer Correct Answer: B) True. 10. Deficit Financing affects A) Consumption. B) War. C) Unemployment. D) Government control. Show Answer Correct Answer: A) Consumption. 11. Government revenue comes from A) Oil Fund + State Enterprises + National Budget. B) Money from government and private taxes. C) Income + loan + treasury. D) Money from donations at various temples. Show Answer Correct Answer: C) Income + loan + treasury. 12. Fiscal deficit is calculated as A) Primary deficit-interest payment. B) (Revenue receipts+ Non-debt capital receipts)-Total expenditure. C) Total Revenue-Total expenditure. D) Revenue receipts-Revenue expenditure. Show Answer Correct Answer: B) (Revenue receipts+ Non-debt capital receipts)-Total expenditure. 13. In an indirect tax, the incidence and impact falls on ..... A) The same person. B) The different person. Show Answer Correct Answer: B) The different person. 14. 2-Public finance literature is explicitly normative. A) False. B) True. Show Answer Correct Answer: B) True. 15. Finance is divided into two categories:Public Finance and Private Finance A) True. B) False. Show Answer Correct Answer: A) True. 16. Which is not a type of Money Supply? A) With. B) Mch. C) What. D) M1. Show Answer Correct Answer: B) Mch. 17. All the following are the objectives of government taxation, except A) To increase in inquality of income distribution between the rich and the poor. B) To restraint the consumer from consuming unhelathy products. C) To protect local and infants industries. D) To increase government revenue. Show Answer Correct Answer: A) To increase in inquality of income distribution between the rich and the poor. 18. I was short of money and had to ..... $ 10 from a friend. A) Pay. B) Cost. C) Borrow. D) Lend. Show Answer Correct Answer: C) Borrow. 19. Which of the following is a component of public expenditure? A) Taxation. B) Borrowing. C) Transfer payments. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. The function of the government where a situation exist that the markets fail to provide the needed goods or the appropriate amounts of goods or services as it is impossible for private business to do so and earn profit, thus the public sector grants resources through governmental process. A) Distribution. B) Allocation. C) Development. D) Stabilization. Show Answer Correct Answer: B) Allocation. 21. Bond sales are used for debt financing that meets which of the following? A) Used for long-term debt creation. B) Used for incurring debts with foreign governments. C) Used for short-term loans of no more than 1 year. D) Used for medium-term debt creation not exceeding 10 years. Show Answer Correct Answer: A) Used for long-term debt creation. 22. Credit to private individual finance is ..... A) Unlimited. B) Limited. C) Unbounded. D) None of above. Show Answer Correct Answer: B) Limited. 23. What is the relationship between tax compliance and economic efficiency? A) Higher levels of tax compliance can lead to more efficient allocation of resources. B) Higher levels of tax compliance can reduce the burden of tax administration on the government. C) Lower levels of tax compliance can lead to reduced government revenue and inadequate public services. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. Which is not a measure of the role of the state and market in the economy? A) Control of factors of production. B) Product and service quality assurance. C) Production decisions. D) Product pricing. Show Answer Correct Answer: B) Product and service quality assurance. 25. The loan obtained from foreign governments, foreign financial institutions and international financial institutions is called A) External debt. B) Foreign debt. C) Internal debt. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 26. Command Economy corresponds to which type of economic system? A) Mixed economy system. B) Manipulative economic system. C) Market economy system. D) Mechanistic economic system. Show Answer Correct Answer: B) Manipulative economic system. 27. Deficit Financing is also called as Public Finance A) False. B) True. Show Answer Correct Answer: B) True. 28. Study shows income is transferred to the poor. A) True. B) False. Show Answer Correct Answer: A) True. 29. The government withdraws its investment from its own industries is called A) Investment. B) Privatisation of industries. C) Disinvestment. D) Closure of industries. Show Answer Correct Answer: C) Disinvestment. 30. The statement that Thailand is a single state (Unitary State) appears as evidence confirmed by which section of the Constitution? A) Section 3. B) Section 4. C) Section 1. D) Section 2. Show Answer Correct Answer: C) Section 1. ← 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