This quiz works best with JavaScript enabled. Home > Public Finance > Public Finance – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Fiscal deficit is calculated as A) Revenue receipts-Revenue expenditure. B) Total Revenue-Total expenditure. C) (Revenue receipts+ Non-debt capital receipts)-Total expenditure. D) Primary deficit-interest payment. Show Answer Correct Answer: C) (Revenue receipts+ Non-debt capital receipts)-Total expenditure. 2. Treasury means A) Money left over from spending in previous years. that the government has accumulated and can bring out to compensate for the deficit. B) Remaining taxes from previous years' spending that the government has accumulated and can bring out to compensate for the deficit. C) Money left over from spending in previous years that the government has accumulated but cannot bring out to compensate for the deficit. D) All correct. Show Answer Correct Answer: A) Money left over from spending in previous years. that the government has accumulated and can bring out to compensate for the deficit. 3. 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. 4. 2-Public finance literature is explicitly normative. A) True. B) False. Show Answer Correct Answer: A) True. 5. Finance is divided into two categories:Public Finance and Private Finance A) True. B) False. Show Answer Correct Answer: A) True. 6. Which is not a type of Money Supply? A) M1. B) What. C) With. D) Mch. Show Answer Correct Answer: D) Mch. 7. Direct taxes A) Money that taxpayers can pass on to the tax burden. and can pay taxes after the deadline. B) Money that the taxpayer bears the entire tax burden. But the tax burden can be passed on to relatives. C) Money that is borne by the taxpayer. The tax burden can be passed on to others. D) Money that the taxpayer bears the entire tax burden. The tax burden cannot be passed on to others. Show Answer Correct Answer: D) Money that the taxpayer bears the entire tax burden. The tax burden cannot be passed on to others. 8. 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. 9. I was short of money and had to ..... $ 10 from a friend. A) Borrow. B) Lend. C) Cost. D) Pay. Show Answer Correct Answer: A) Borrow. 10. 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. 11. 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. 12. Bond sales are used for debt financing that meets which of the following? A) Used for short-term loans of no more than 1 year. B) Used for medium-term debt creation not exceeding 10 years. C) Used for long-term debt creation. D) Used for incurring debts with foreign governments. Show Answer Correct Answer: C) Used for long-term debt creation. 13. Credit to private individual finance is ..... A) Unlimited. B) Limited. C) Unbounded. D) None of above. Show Answer Correct Answer: B) Limited. 14. 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. 15. 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. 16. Economic growth A) To allow the country's economy to expand internationally for national development. B) To develop the country from a developing country to a middle-class country. C) In order for the country's economy to expand continuously and efficiently. D) In order for the country's economy to join a large number of organizations. Show Answer Correct Answer: C) In order for the country's economy to expand continuously and efficiently. 17. 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. 18. Command Economy corresponds to which type of economic system? A) Market economy system. B) Mixed economy system. C) Mechanistic economic system. D) Manipulative economic system. Show Answer Correct Answer: D) Manipulative economic system. 19. Budget means A) Estimated documents regarding government revenue-orders. B) Estimated document regarding government income-expenses. C) Estimated documents regarding income-expenses of state enterprises. D) Estimated documents regarding private sector revenues and product orders. Show Answer Correct Answer: B) Estimated document regarding government income-expenses. 20. Deficit Financing is also called as Public Finance A) True. B) False. Show Answer Correct Answer: A) True. ← 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