This quiz works best with JavaScript enabled. Home > Public Finance > Public Finance – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not the type of economic system that the classical schools proposed? A) Market economy. B) Price mechanism economy. C) Free trade economy. D) Mixed economy. Show Answer Correct Answer: C) Free trade economy. 2. During the Thaksin government Shinawatra has lowered the public debt ceiling by what percentage? A) 60 percent to GDP. B) 55 percent to GDP. C) 50 percent to GDP. D) 45 percent to GDP. Show Answer Correct Answer: C) 50 percent to GDP. 3. The objectives of fiscal policy are A) To achieve economic growth. B) Maintain economic stability. C) Achieve a fair distribution of income. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Which of the following taxes is levied on the production and sale of certain goods, such as tobacco and alcohol? A) Value-added tax. B) Excise tax. C) Income tax. D) Real property tax. Show Answer Correct Answer: B) Excise tax. 5. In India the petiod of financial year is A) 1st March-31st April of subsequent year. B) 1st January-31st December of subsequent year. C) 1st April-31st March of subsequent year. D) June 1St-December 31st. Show Answer Correct Answer: C) 1st April-31st March of subsequent year. 6. It refers to discovery and exploration of a business opportunity with the purpose of converting it into a going concern. A) Business Promotion. B) Business Study. Show Answer Correct Answer: A) Business Promotion. 7. The correct group of direct tax is A) Personal income tax, corporate tax, wealth tax and stamp duty. B) Corporate tax, wealth tax, personal income tax and export import tax. C) Export import tax, GST, corporate tax and VAT. D) Corporate tax, export-import tax, GST and wealth Tax. Show Answer Correct Answer: A) Personal income tax, corporate tax, wealth tax and stamp duty. 8. If the budget shows excess revenue as compared to expenditure, it is called as A) Balanced budget. B) Surplus budget. C) Deficit budget. D) Financial budget. Show Answer Correct Answer: B) Surplus budget. 9. Government expenditures may be classified according to functional use into five broad categories except for: A) Economic and Social Development. B) National Defense. C) General Public Services. D) Debt Services. E) None of the above. Show Answer Correct Answer: E) None of the above. 10. ..... is a plan of financial operation composed of estimated or proposed expenditure for a given period or purposed and the proposed means of financing them. A) Forecasts. B) Budget. C) Debt. D) Options. Show Answer Correct Answer: B) Budget. 11. The government imposes lower rate of taxes on A) High income group. B) Low income group. C) Medium income group. D) All of these. Show Answer Correct Answer: B) Low income group. 12. Tax imposed on locally made goods are called A) Import duties. B) Direct tax. C) Progressive tax. D) Excise duties. Show Answer Correct Answer: D) Excise duties. 13. Zero base budgeting was adopted in india in A) 1987-88. B) 1957-58. C) 1977-78. D) 1967-68. Show Answer Correct Answer: A) 1987-88. 14. Which of the following is a component of government revenue? A) Transfer payments. B) Public debt. C) Taxes. D) Public goods. Show Answer Correct Answer: C) Taxes. 15. Budget is like A) Blood-forming cells nourish the various organs of the body. B) Legs and arms that can do things on their own correctly and fairly. C) The heart that pumps blood to all parts of the body. D) A brain that can command preparation or receive instructions. Show Answer Correct Answer: C) The heart that pumps blood to all parts of the body. 16. "Monetary wages have slowed-at constant price levels. Real wages fall-Business profits per unit increase-Business expands production-Employment increases" This process most closely involves which of the following mechanisms? A) Price mechanism. B) Employment mechanism. C) Automatic stabilization mechanism. D) Competition mechanism. Show Answer Correct Answer: C) Automatic stabilization mechanism. 17. Which is not a component of debt that appears on the website of the Public Debt Management Office? A) Debt borrowed directly by the government. B) Debt of local government organizations. C) State enterprise debt. D) Debt from the Recovery Fund. Show Answer Correct Answer: B) Debt of local government organizations. 18. A state mechanism that intervenes in the entire economic system like in the case of the Soviet Union in the past before its collapse. There are several important characteristics of an economic system. But which one is not? A) Using a state-directed economic system (Centralized Planning). B) Allocate goods and services by centralizing power. C) There are often problems of overproduction and underproduction. D) Use a market economy mixed with state control and supervision. Show Answer Correct Answer: D) Use a market economy mixed with state control and supervision. 19. It is defined as the study of the acquisition and investment of cash for the purpose of enhancing value and wealth. A) Finance. B) Business Finance. Show Answer Correct Answer: A) Finance. 20. Governments generally impose higher taxes on the rich, moderate taxes on the not-so-rich and exempt the poor from paying taxes. This principle of taxation is called ..... A) Progressive taxation policy. B) Heavy taxation policy. C) Direct taxation policy. D) Protective taxation policy. Show Answer Correct Answer: A) Progressive taxation policy. ← PreviousNext →Related 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 9Public Finance Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books