Correct : B. the rate of rises with a rise in income
2. A forward-shifted tax will affect
Correct : A. buyers more than sellers
3. If with the increase in income, the percentage of income collected as tax remains constant, tax will be
called
Correct : C. proportional
4. Repayment of public debt refers to
Correct : B. redemption of public debt
5. Which of the following canon of taxation is given by Adam Smith
Correct : C. canon of economy
6. Tobin tax is a tax on
Correct : D. transaction on the foreign exchange market
7. In case of deficit budget, when the deficits are covered through taxes, that budget is called:
Correct : A. unbalanced budget
8. Expenditure tax was introduced in India as per the recommendation of ………………
Correct : B. kaldor
9. Wealth tax was abolished in
Correct : D. 2015
10. According to Wiseman and peacock, public expenditure will increase in a
Correct : C. step – like manner
11. Canons of budgeting was given by
Correct : B. h d smith
12. Concept of concentration and displacement effect in public expenditure are attributed to
Correct : A. allen t. peacock and jack wiseman
13. The greater the elasticity of supply, the greater is
Correct : A. incidence of tax on buyers
14. The ability to pay principle of taxation is logically most consistent with the normative notion of :
Correct : D. vertical equality
15. Which committee recommended tax on agriculture holding in India?
Correct : B. raj committee
16. With a regressive tax, as income
Correct : D. increases, the tax rate decreases
17. The principle of maximum social advantage is concerned with
Correct : D. both taxation and public expenditure
18. Justice in taxation is best ensured by applying the principle of
Correct : C. equal marginal sacrifice
19. Agriculture income tax is a source of revenue to
Correct : B. state government
20. Ad Valorom means
Correct : A. according to value
21. Octrio is levies and collected by
Correct : C. local bodies
22. The relationship between tax collections and tax rates has been expressed by
Correct : C. laffer curve
23. All taxes come under
Correct : B. revenue receipt
24. The merit of zero-based budgeting is that
Correct : D. expenditure is rationalized
25. The concept of Zero-Based-Budget(ZBB) was given by
Correct : C. peter a pyhr
26. If interest payments are subtracted from gross fiscal deficit, the remainder will be
Correct : B. gross primary deficit
27. Interest payment is an item of
Correct : A. revenue expenditure
28. The basis of corporate tax is
Correct : A. total turnover of the company
29. Federalism refers to a
Correct : A. relationship between the national and state governments.
30. The objective of taxation by the Government are –
Correct : D. all of the above
31. Which of the following is not a direct tax?
Correct : B. service tax
32. Transfer Payments include
Correct : D. corporate income tax
33. The following is not a characteristic of a tax.
Correct : C. there is a quid-pro-quo between the tax payer and the government.
34. The following is a characteristic of indirect tax –
Correct : A. the impact and incidence are not on the same person.
35. Special assessment is also known as
Correct : B. battement levy
36. Impact of a tax refers to
Correct : B. immediate money burden
37. Which factor has no role in the shifting of a tax?
Correct : D. income of the consumer
38. Which of the following is not a direct tax?
Correct : D. service tax
39. Which of the following is administrative non-tax revenue?
Correct : A. fees
40. Which of the following is not an indirect tax?
Correct : D. gift tax
41. Generally, the nature of indirect tax is ……………
Correct : B. regressive
42. Direct tax are………….. in nature.
Correct : A. progressive
43. The term incidence of taxation refers to .....
Correct : B. final burden of the tax
44. Debts which have to be paid at some specific future date are known as
Correct : A. redeemable debts
45. Which is / are the advantages of redemption of debt.
Correct : D. all of the above
46. Pick out the item which is not a part of tax revenue.
Correct : A. interest
47. The term fiscal federalism was introduced by
Correct : C. musgrave
48. The theory of fiscal federalism assumes –
Correct : D. all of the above
49. An empirical law to the effect of growing public expenditure was propounded by
Correct : A. wagner
50. Productive debts are utilized for ........
Correct : B. they are raised for financing wars
51. External debts can be raised from ...........
Correct : D. world bank
52. Debts that are repaid at some specific future date are known as
Correct : A. redeemable debts
53. External loans are raised from
Correct : D. wto
54. The concept of Merit goods was developed by ................
Correct : A. musgrave
55. Non-rival consumption is the feature of ..............
Correct : A. public good
56. The theory of second best was introduced by ...............
Correct : A. lipse and lancester
57. Wagner’s Law of increasing ............ activities.
Correct : B. state
58. Wiseman-Peacock was studied expenditure of .............. in 1890-1955.
Correct : C. uk
59. Pure theory of public expenditure is based on ..............
Correct : A. benefit
60. Social marginal productivity criteria was developed by ...........
Correct : B. a. e. khan
61. Balanced budget means ................ between revenue and expenditure.
Correct : A. balance
62. ................... budget concept was first introduced in USA in 1964.
Correct : A. zero-base
63. Public debt is the debt owed by ................
Correct : C. central government
64. In a concept of budgetary deficit, ............... is always greater than the total revenue.
Correct : A. public expenditure
65. The value of balanced budget multiplier is always ................
Correct : B. 1
66. ............ tax is in the jurisdiction of the Central government.
Correct : B. corporation tax
67. In internal debt ................ are important.
Correct : B. market loans
68. Public debt in Indian Economy is .................... in nature.
Correct : A. increasing
69. Fiscal Crisis was carried in ................. period.
Correct : A. planning
70. Which of the following is a Revenue Receipt?
Correct : B. grant received from the world bank
71. Which of the following is a Capital Receipt?
Correct : D. borrowing from the public
72. Which one of the following is not the form of Tax Revenue?
Correct : C. license fee
73. Identify the Capital Receipts
Correct : D. sale of a public sector undertaking
74. Existence of Centre State economic inequalities is known as
Correct : A. vertical imbalance
75. A multilevel decentralized fiscal system involving sharing of fiscal responsibilities between central,
state and local governments is referred to as:
Correct : B. fiscal federalism
76. The system of assigning the source of revenue to the Central as well as State Governments is
generally referred to as
Correct : D. federal finance
77. The modern state is:
Correct : B. welfare state
78. Which one of the following is the most acceptable theory of taxation:
Correct : C. ability to pay theory
79. The Indian income tax is:
Correct : D. direct and progressive
80. The main objective of budgeting is:
Correct : D. all of these
81. Wiseman‐Peacock hypothesis supports in a much stronger manner the possibility of:
Correct : A. an upward trend in public expenditure
82. A negative externality is
Correct : C. hurting effect of a private action on other people
83. The “Tragedy of the Commons” is
Correct : B. exhaustion of resources that are collectively owned.
84. Which of the following is a public good?
Correct : C. both of the above.
85. The provision of public goods requires
Correct : D. none of the above.
86. Public goods are those for which
Correct : B. individuals who do not pay cannot be excluded from consuming.
87. When consumption of a good is non-rival and non-excludable, the good is a
Correct : A. public good.
88. Of those listed below, the best example of a pure public good is
Correct : A. a radio broadcast.
89. Non-rivalry is a feature of
Correct : A. public goods.
90. Non-excludability is a feature of
Correct : C. public goods d. all non-rival goo
91. Pure private goods are those for which consumption is
Correct : B. rival and excludable.
92. When consumption is rival and excludable, the product is a
Correct : A. private good.
93. A good or service or a resource is non-excludable if
Correct : C. it is not possible to prevent someone from benefiting from it.
94. An uncrowded toll road is ________ because it is ________.
Correct : A. not a pure public good; non-rival but excludable
95. A good or service or a resource is excludable if
Correct : A. it is possible to prevent someone from enjoying the benefits of it.
96. A good or service or a resource is non-rival if
Correct : A. it is not possible to prevent someone from enjoying the benefits of it.
97. If the consumption of Good A by one person does not decrease the consumption of Good A by
another person, then the good is said to
Correct : C. non-rival.
98. The nature of federalism was changed forever by
Correct : C. the civil war
99. Cooperative federalism is characterized by
Correct : B. a stronger, more influential national government.
100. Peacock and Wiseman Hypothesis on public expenditure consists of three concepts which are:
Correct : C. displacement effect, concentration effect, inspection effect