Question 1

The idea of 'Democratic Decentralization' in India was popularized by:

Accepted Answer

A)  a.d. gorwala committee, 1951
B)  b.r. mehta committee, 1957
C)  ashok mehta committee, 1978
D)  none of theseE) C) and D)
F) A) and D)

Question 2

Merit goods are those which, when consumed, generate positive external benefits. This is likely to mean that, in a free market economy, the good will be:

Accepted Answer

A)  Over-consumed.
B)  Over-supplied.
C)  Subject to VAT.
D)  Under-supplied.E) All of the above
F) A) and D)

Question 3

The controlling authority of Government expenditure is:

Accepted Answer

A)  rbi
B)  planning commission
C)  ministry of finance
D)  finance commissionE) None of the above
F) A) and C)

Question 4

Which of the following does NOT determine the nature of Public Economics?

Accepted Answer

A)  Public economics studies the government and how its policies affect the economy.
B)  Public economics is the study of government policy through the lens of economic efficiency and equity.
C)  Public economics builds on the theory of welfare economics and is ultimately used as a tool to improve social
D)  Public Economics studies the behaviour of private firms and is called economics of Priavte Sector.E) C) and D)
F) A) and B)

Question 5

A criterion by which public goods are distinguished from private goods:

Accepted Answer

A)  exclusion principle
B)  externality principle
C)  public choice principle
D)  none of the aboveE) A) and B)
F) A) and D)

Question 6

Which is the method of financial adjustment between Centre and States?

Accepted Answer

A)  tax sharing
B)  grant?in?aid
C)  public debt
D)  federal financeE) A) and B)
F) None of the above

Question 7

In the case of direct tax, impact and incidence are on:

Accepted Answer

A)  Same person.
B)  Sellers.
C)  Different person.
D)  Producer.E) B) and C)
F) B) and D)

Question 8

The Kelkar Proposals are concerned with:

Accepted Answer

A)  recommendations for re4forms in the power sector
B)  recommendations for tax reforms
C)  guidelines for the privatization of public sector undertakings
D)  none of the aboveE) B) and C)
F) None of the above

Question 9

Following are some of examples of Transfer Expenditure EXCEPT:

Accepted Answer

A)  Interest payments on public debt.
B)  Social infrastructure such as education, health and family welfare.
C)  Unemployment allowances.
D)  Subsidies.E) A) and B)
F) A) and C)

Question 10

The final resting place of the burden of tax is called:

Accepted Answer

A)  tax avoidance
B)  tax evasion
C)  impact
D)  incidenceE) A) and D)
F) C) and D)

Question 11

Classical canons of taxation are propounded by:

Accepted Answer

A)  adam smith
B)  bastable
C)  dalton
D)  keynesE) B) and C)
F) A) and D)

Question 12

Printing of new currency notes and RBI borrowings by government is called:

Accepted Answer

A)  Government Loans.
B)  Government Securities.
C)  Government Bonds.
D)  Deficit Financing.E) None of the above
F) C) and D)

Question 13

Which of the following is NOT the effect of taxation on production?

Accepted Answer

A)  Effects on the distribution of income and wealth.
B)  Effects on the ability to work, save and invest.
C)  Effects on the will to work, save and invest.
D)  Effects on the allocation of resources.E) C) and D)
F) B) and D)

Question 14

Public Debt Management refers to

Accepted Answer

A)  terms of new bonds
B)  proportion of different components of public debt
C)  maturity
D)  all the aboveE) A) and B)
F) A) and C)

Question 15

In the case of relatively elastic demand, the money burden of tax is on:

Accepted Answer

A)  Entirely on seller.
B)  More on seller.
C)  Entirely on buyer.
D)  More on buyer.E) B) and C)
F) None of the above

Question 16

The following is an example of direct taxes:

Accepted Answer

A)  sales tax
B)  income tax
C)  estate duties
D)  toll taxE) B) and C)
F) None of the above

Question 17

The Principle of Maximum Social Advantage is associated with:

Accepted Answer

A)  dalton
B)  pigou
C)  seligman
D)  hicksE) A) and B)
F) B) and C)

Question 18

The income of the government through all its sources is called

Accepted Answer

A)  public expenditure
B)  public revenue
C)  public finance
D)  none of theseE) All of the above
F) B) and C)

Question 19

When expenditure exceeds total tax revenue, it is called:

Accepted Answer

A)  surplus budget
B)  balanced budget
C)  deficit budget
D)  none of theseE) A) and D)
F) B) and C)

Question 20

Fiscal Federalism refers to

Accepted Answer

A)  sharing of political power between centre and states
B)  organising and implementing economic plans
C)  division of economic functions and resources among different layers of govt.
D)  none of theseE) C) and D)
F) A) and C)

Exam 1: Public Finance and Taxation Policy

The income of the government through all its sources is called

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In the case of direct tax, impact and incidence are on:

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The Kelkar Proposals are concerned with:

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The controlling authority of Government expenditure is:

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Fiscal Federalism refers to

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Which of the following is NOT the effect of taxation on production?

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When expenditure exceeds total tax revenue, it is called:

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The final resting place of the burden of tax is called:

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The following is an example of direct taxes:

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The Principle of Maximum Social Advantage is associated with:

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Printing of new currency notes and RBI borrowings by government is called:

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The idea of 'Democratic Decentralization' in India was popularized by:

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Which of the following does NOT determine the nature of Public Economics?

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Public Debt Management refers to

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Which is the method of financial adjustment between Centre and States?

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Merit goods are those which, when consumed, generate positive external benefits. This is likely to mean that, in a free market economy, the good will be:

Correct AnswerverifiedShow Answer

In the case of relatively elastic demand, the money burden of tax is on:

Correct AnswerverifiedShow Answer

A criterion by which public goods are distinguished from private goods:

Correct AnswerverifiedShow Answer

Following are some of examples of Transfer Expenditure EXCEPT:

Correct AnswerverifiedShow Answer

Classical canons of taxation are propounded by:

Correct AnswerverifiedShow Answer

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