Beruflich Dokumente
Kultur Dokumente
2013
1. Which is the main point on the basis of which public finance can be distinguished
from private finance?
(a) Price policy
(b) Borrowing
(c) Secrecy
2. The main difference between public and private finance is
(a) balance of income-expenditure
(b) coercive to raise income
(c) dissaving
3. There are several chances of market failures in laissez-faire capitalism; and to
improve the efficiency of market and as its corrective measure
(a) government intervention is advocated
(b) private intervention is advocated
(c) monopoly power is advocated
4. Increase in public expenditure provides
(a) economic stability
(b) economic instability
(c) economic degradation
5. Public expenditure is not merely a financial mechanism but a means securing
(a) capital objectives
(b) social objectives
(c) socialism
6. Which one of the following is the objective of public debt?
(a) Development finance
(b) To overcome depression
(c) All of the above
7. A tax levied at 10% on the first Rs 10,000 of income, 15% on the next Rs 20,000 and
7% on the next Rs 30,000, would be
(a) progressive tax
(b) regressive tax
(c) proportional tax
8. Which one of the following is a characteristics of a tax?
(a) Optional
(b) Compulsory
(c) Forced
9. Which one of the following is the meaning of taxable capacity?
(a) Maximum limit/capacity to which the government can tax the people
(b) Minimum limit/ capacity to which the government can tax the people
(c) Moderate limit/ capacity to which the government can tax the people
10. The principle of sound finance in which small and balanced budget was advocated by
(a) J.M. Keynes
(b) A.P. Lerner
(c) Classical economists
2014
1. Market failure can occur when
(a) monopoly power exists in the market
(b) markets are missing
(c) moral hazard, and adverse selection exist
(d) All of the above
2. A good is considered to be non-rival in consumption, when
(a) two or more persons can consume the same good
(b) only one person consume it
(c) it is a non-consumable good
(d) None of the above
3. According to Wagner, the root cause of the increasing public expenditure in modern
times is
(a) Defence
(b) The pressure for social progress
(c) Democracy
(d) None of the above
4. The canon of sanction in public expenditure implies that
(a) Every government expenditure should be audited
(b) No audit is required for government expenditure
(c) Government expenditure should be reduced
(d) None of the above
5. A tax is ad valorem, when
(a) it is based on income
(b) it is based on the money value of goods
(c) it is based on the weight of the goods
(d) All of the above
6. Impact of a tax refers to
(a) the legal responsibility of a person
(b) the shifting possibility
(c) the final money burden of a tax
(d) None of the above
7. Which among the following is not a method of debt redemption?
(a) Sinking fund
(b) Refunding
(c) Deficit financing
(d) All of the above
8. Government resorted to borrowing, when
(a) current revenues fall short of public expenditure
(b) current revenues exceed public expenditure
(c) current revenues equal public expenditure
(d) None of the above
9. The First Finance Commission was appointed in the year
(a) 1950
(b) 1951
(c) 1952
(d) 1955
10. The economic classification of Central Budget consists of
(a) 6 accounts
(b) 7 accounts
(c) 8 accounts
(d) 10 accounts
2015
1. Which is the main point of difference between public and private finances?
(a) Borrowing
(b) Secrecy
(c) Price policy
(d) All of the above
2. Market failure occurs when
(a) monopoly power exists in the market
(b) markets are missing
(c) moral hazard and adverse selection exist
(d) All of the above
3. Public expenditure is a financial means to secure
(a) capital objectives
(b) social objectives
(c) socialism
(d) employment
4. Increase in public expenditure is not due to
(a) expansion of state activities
(b) population increase
(c) urbanization
(d) existence of black market
5. A tax is ad valorem when it is
(a) based on income
(b) based on money value
(c) based on the weight of good
(d) based on transport cost
6. MODVAT means
(a) modified value added tax
(b) modernized value added tax
(c) moderated value added tax
(d) mode of value added tax
7. A method of debt redemption includes
(a) sinking fund
(b) capital levy
(c) refunding
(d) All of the above
8. The main objective of taking public loan is to
(a) achieve social objective
(b) achieve personal objective
(c) achieve long-term objective
(d) achieve short-term objective
9. Functional classification of budget refers to
(a) economic services only
(b) social services only
(c) general services only
(d) A11 of the above
10. The First Finance Commission was appointed in
(a) 1951
(b) 1954
(c) 1956
(d) 1960
2016
1. Who defines public finance as „the study of the principles underlying the spending
and raising of funds by public authorities‟?
(a) Prof. Hugh Dalton
(b) Findlay Shiras
(c) Harold Groves
(d) J. M. Keynes
2. Focus of marketing activity is always on
(a) consumer‟s need
(b) producer‟s need
(c) government‟s need
(d) taxable need
3. Increase in public expenditure provides
(a) economic stability
(b) economic instability
(c) economic degradation
(d) None of the above
4. Development expenditure consists of expenditure on
(a) social services
(b) community services
(c) economic services
(d) All of the above
5. The process of transferring the tax is known as
(a) incidence of taxes
(b) tax burden
(c) tax shifting
(d) impact of taxes
6. If the rate of tax rises with rise in income, it is called
(a) a regressive tax
(b) a progressive tax
(c) a proportional tax
(d) All of the above
7. Which among the following is not a method of debt redemption?
(a) Sinking fund
(b) Capital levy
(c) Deficit financing
(d) All of the above
8. Government resort to the borrowing when
(a) current revenue falls short of public expenditure
(b) current revenue exceeds public expenditure
(c) current revenue equals public expenditure
(d) None of the above
9. The First Finance Commission was appointed in November, 1951 under the
chairmanship of
(a) Shri K. Santhanam
(b) Shri A.K. Chanda
(c) Shri K.C. Neogi
(d) Shri K.C. Pant
10. The budget is divided into two parts—the revenue budget and the
(a) expenditure budget
(b) financial budget
(c) receipts budget
(d) capital budget
2017
1. Who among the following advocates the principle of maximum social advantage?
(a) J. S. Mill
(b) Hugh Dalton
(c) Adam Smith
(d) None of them
2. Who defines, “Public finance is concerned with the income and expenditure of public
authorities and with the adjustment of the one to another.”?
(a) Prof. Hugh Dalton
(b) Findlay Shiraz
(c) Harold Groves
(d) J. M. Keynes
3. Public Expenditure is a financial means to secure
(a) capital objectives
(b) social objectives
(c) socialism
(d) employment
4. Which of the following items accounts for the highest expenditure in the Union
budget 2017-18?
(a) Defence
(b) Education
(c) Grants and loans to States
(d) Food subsidy
5. A tax is ad valorem, when it is based on the
(a) income
(b) weight of goods
(c) transport cost
(d) All of the above
6. Which of the following is direct tax?
(a) Sales tax
(b) Entertainment tax
(c) Income tax
(d) Luxury tax
7. Which of the following is not a method of debt redemption?
(a) Deficit financing
(b) Sinking fund
(c) Debt conversion
(d) None of the above
8. The effect of public debt in an inflationary situation is
(a) contractionary
(b) expansionary
(c) promotion of investment
(d) increasing consumption
9. Functional classification of budget refers to the
(a) economic services
(b) social services
(c) general services
(d) All of the above
10. The first Finance Commission was appointed in the year
(a) 1950
(b) 1951
(c) 1952
(d) 1955