This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an example of how taxes can promote economic efficiency? A) Using tax revenue to fund infrastructure projects that improve transportation and communication. B) Implementing progressive taxation to reduce income inequality. C) Offering tax incentives to companies that implement sustainable practices. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. ..... is one when the pattern of distribution changes due to the imposition of a new tax or by changing the rates of existing taxation, keeping public expenditure and other budgetary phenomena unchanged. A) Differential tax incidence. B) Formal tax incidence. C) Effective tax incidence. D) Specific tax incidence. Show Answer Correct Answer: D) Specific tax incidence. 3. The type of tax that the initial burden falls on the tax payer is known as ..... tax A) Proportional. B) Progressive. C) Indirect. D) Direct. Show Answer Correct Answer: D) Direct. 4. Who dominated the international lending in the 17th Century? A) The Italians. B) The Dutch. C) The French. D) The English. Show Answer Correct Answer: B) The Dutch. 5. A person who receives a the benefit of a good but avoids paying for it. A) FREE RIDER. B) FREE COMMUTE. C) PABUHAT. D) FREE TOLL. Show Answer Correct Answer: A) FREE RIDER. 6. Which agency is responsible for inspecting the spending of various government agencies? A) Comptroller General's Department. B) Bank of Thailand. C) Office of the Auditor General of Thailand. D) Spending Audit Office. Show Answer Correct Answer: C) Office of the Auditor General of Thailand. 7. "The budget expenditures for fiscal year 2000 and fiscal year 2001 increased from the previous fiscal year by 4.2 percent and 5.8 percent, respectively." Which theory corresponds to Chapter 2, Master's thesis work of Professor Phaisan Prabudsuwan? A) Rules for increasing public expenditures. B) Model for the development of public expenditure growth. C) Theory of change from the original. D) Economic theories regarding budgeting. Show Answer Correct Answer: C) Theory of change from the original. 8. Which of the following taxes is levied on the sale of goods and services? A) Excise tax. B) Value-added tax. C) Income tax. D) Documentary stamp tax. Show Answer Correct Answer: B) Value-added tax. 9. The revenue generated by the government through tax and non-tax source is A) Revenue Reciepts. B) Revenue expenditure. C) Non Tax revenue. D) Tax Revenue. Show Answer Correct Answer: A) Revenue Reciepts. 10. Which is not a reason and necessity for establishing a state enterprise? A) Provision of public services. B) Some aspects of business affect life and living conditions. C) Some areas of business may have negative effects on society and health. D) In some areas of business, it is necessary to seek maximum profit. Show Answer Correct Answer: D) In some areas of business, it is necessary to seek maximum profit. 11. The principle of Maximum Social Advantage have been suggested by A) Adam Smith. B) Pigou. C) Dalton. D) Musgrave. Show Answer Correct Answer: C) Dalton. 12. Management of income, expenditure, and debt of an individual is called A) Private finance. B) Corporate finance. C) Public finance. D) Personal finance. Show Answer Correct Answer: D) Personal finance. 13. Adam Smith's statement: "Our lives would be very boring. If a hungry brewer were to seek out a thirsty baker for beer, " what does that say about necessity? A) Exchange. B) Production. C) Distribution. D) Consumption. Show Answer Correct Answer: A) Exchange. 14. It is an estimate of the quantity of products that should be produced in accordance with the sales budget. A) SALES BUDGET. B) PRODUCTION BUDGET. Show Answer Correct Answer: B) PRODUCTION BUDGET. 15. Two of the most important from the point of view of business finance. A) Balance Sheet and Income Statement. B) Cash Flows and Statement of Owners Equity. Show Answer Correct Answer: A) Balance Sheet and Income Statement. 16. Which of the following is not classified as an indirect tax? A) Corporate income tax. B) VAT. C) Specific business tax. D) Customs duty. Show Answer Correct Answer: A) Corporate income tax. 17. How can high tax rates negatively impact economic efficiency? A) By reducing consumer spending and decreasing demand for goods and services. B) By discouraging businesses from investing and expanding their operations. C) By encouraging tax evasion and underground economic activities. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. ..... is the difference between the face value of money and the cost to produce it. A) Taxation. B) Subsidy. C) Surplus Value. D) 'Seigniorage'. Show Answer Correct Answer: D) 'Seigniorage'. 19. There are 2 main types of budget expenditures for local government organizations. A) Central budget expenses and capital budget expenses. B) Planned expenses and regular expenses. C) General expenditure budget and specific expenditure budget. D) Regular expenses and central budget expenses. Show Answer Correct Answer: C) General expenditure budget and specific expenditure budget. 20. Bonds without maturity: A) Consorts. B) Consols. C) Concise. D) Consuls. Show Answer Correct Answer: B) Consols. 21. .... are the major sources of revenue for the government. A) Tax. B) Net revenue. C) Revenue receipts. D) Public revenue. Show Answer Correct Answer: A) Tax. 22. ..... are those which convert raw materials into finished products. A) GENETIC INDUSTRIES. B) MANUFACTURING INDUSTRIES. Show Answer Correct Answer: B) MANUFACTURING INDUSTRIES. 23. Maximizing Profit means realizing the highest possible peso or dollar income. A) Maximizing Profit. B) Maximizing Profitability. Show Answer Correct Answer: A) Maximizing Profit. 24. The correct group of indirect tax is A) Corporate tax, personal income tax, GST. B) GST, export.-import tax and VAT. C) Stamp duty, export import tax and GST. D) Wealth Tax, GST and VAT. Show Answer Correct Answer: B) GST, export.-import tax and VAT. 25. The perpetual problem in economics is: A) The inability of people to work together effectively. B) The inability to satisfy everyone's wants with the resources available. C) The gap between the income of the rich and the poor. D) How to supply enough to earn a consistent profit. Show Answer Correct Answer: B) The inability to satisfy everyone's wants with the resources available. 26. PIB in budgeting Stands for? A) Press information bureau. B) Performance Informed budgeting. C) Performance Incentive Bonus. D) Performance. Show Answer Correct Answer: B) Performance Informed budgeting. 27. Which is not in the Vicious Circle of Poverty? A) Savings and investments. B) Income. C) Deflationary inflation. D) Employment. Show Answer Correct Answer: C) Deflationary inflation. 28. Following r the indirect tax A) Pit. B) Bit. C) Sales tax. D) Cit. Show Answer Correct Answer: C) Sales tax. 29. How many types of fiscal policy can be divided? A) 3 types. B) 4 types. C) 2 types. D) 5 types. Show Answer Correct Answer: C) 2 types. 30. The expenditure incurred by public authorities like central, state and local governments to satisfy the collective social wants of the people is known as A) Revenue expenditure. B) Capital expenditure. C) Public expenditure. D) Budget expenditure. Show Answer Correct Answer: C) Public 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