This quiz works best with JavaScript enabled. Home > Public Finance > Public Finance – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 1 (20 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) A fixed exchange rate. C) A fixed money supply. D) Large-scale unemployment of resources. Show Answer Correct Answer: B) A fixed exchange rate. 2. Financial Year in India is from ..... to ..... A) January 1st to December 31st. B) December 1st to January 31st. C) April 1st to March 31st. D) March 1st to April 30th. Show Answer Correct Answer: C) April 1st to March 31st. 3. Which school of thought emphasizes and gives importance to economic growth? A) Neoclassical school. B) Keynesian school. C) Marxist office. D) Classical 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) Capital expenditure. B) Tolls. C) Recurrent expenditure. D) Royalties. Show Answer Correct Answer: C) 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) Manipulative economic system. C) Mechanistic economic system. D) Mixed economy system. Show Answer Correct Answer: B) 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) 5, 07%. C) 3%. D) 6, 34%. Show Answer Correct Answer: D) 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) Stupid man's tax. B) Single man tax. C) Thai man tax. D) Masculinity tax. Show Answer Correct Answer: B) Single man tax. 12. Parliament's budget work is open and apparent A) Entireness principle. B) Openness principle. C) Cohesion principle. D) Operability principle. Show Answer Correct Answer: B) Openness principle. 13. Which is not an indirect tax? A) Corporate income tax. B) Specific business tax. C) Specific expansion tax. D) Permissible type of tax. Show Answer Correct Answer: A) 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) Mercantilists. B) Physiocrates. C) Modern. D) Classical. Show Answer Correct Answer: D) 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) State enterprise. C) Public organization. D) Independent state organization. Show Answer Correct Answer: B) 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. 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