| 1. |
When expenditure exceeds total tax revenue, it is called: |
| A. | surplus budget |
| B. | balanced budget |
| C. | deficit budget |
| D. | none of these |
| Answer» C. deficit budget | |
| 2. |
A pure private good is subject to: |
| A. | non exclusion |
| B. | exclusion |
| C. | low satisfaction |
| D. | none of thse |
| Answer» B. exclusion | |
| 3. |
Which of the following is not a fiscal instrument? |
| A. | open market operations |
| B. | public expenditure |
| C. | taxation |
| D. | none of these |
| Answer» A. open market operations | |
| 4. |
An increase in tax rate when tax base expands represents: |
| A. | progressive taxation |
| B. | regressive taxation |
| C. | proportional taxation |
| D. | none of these |
| Answer» A. progressive taxation | |
| 5. |
The main difference between Public and Private Finance is: |
| A. | balance of income‐expenditure |
| B. | coerciveness of fiscal power to raise income: |
| C. | dissaving |
| D. | borrowings |
| Answer» A. balance of income‐expenditure | |
| 6. |
The name of the Chairman of the 11th Finance Commission |
| A. | k.c. pant |
| B. | a.m. kushro |
| C. | r. j. chelliah |
| D. | n.k.p. salve |
| Answer» A. k.c. pant | |
| 7. |
Income tax is based on the principle of: |
| A. | ability to pay |
| B. | willingness to pay |
| C. | benefits received |
| D. | none of these |
| Answer» A. ability to pay | |
| 8. |
The Principle of Maximum Social Advantage is associated with: |
| A. | dalton |
| B. | pigou |
| C. | seligman |
| D. | hicks |
| Answer» A. dalton | |
| 9. |
Which is not the characteristic of a tax? |
| A. | import content |
| B. | compulsory payment |
| C. | non –compulsory payment |
| D. | punishment to tax evader |
| Answer» C. non –compulsory payment | |
| 10. |
Special assessment means: |
| A. | general tax on all people |
| B. | gift tax |
| C. | a tax for specific benefit conferred |
| D. | none of these |
| Answer» C. a tax for specific benefit conferred | |
| 11. |
Classical canons of taxation are propounded by: |
| A. | adam smith |
| B. | bastable |
| C. | dalton |
| D. | keynes |
| Answer» A. adam smith | |
| 12. |
The Kelkar Proposals are concerned with: |
| 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 above |
| Answer» B. recommendations for tax reforms | |
| 13. |
Value Added Tax is: |
| A. | direct tax |
| B. | indirect tax |
| C. | progressive tax |
| D. | none of these |
| Answer» B. indirect tax | |
| 14. |
In the case of direct tax, impact and incidence are on: |
| A. | different person |
| B. | same person |
| C. | sellers |
| D. | none of these |
| Answer» B. same person | |
| 15. |
The direct violation of Tax law is called: |
| A. | tax evasion |
| B. | tax avoidance |
| C. | tax rebate |
| D. | none of these |
| Answer» A. tax evasion | |
| 16. |
The final resting place of the burden of tax is called: |
| A. | tax avoidance |
| B. | tax evasion |
| C. | impact |
| D. | incidence |
| Answer» D. incidence | |
| 17. |
Incidence of tax refers to: |
| A. | initial resting place of the burden of tax |
| B. | final resting place of the burden of tax |
| C. | both (a) and (b) |
| D. | none of these |
| Answer» B. final resting place of the burden of tax | |
| 18. |
A tax levied at 5 percent on the first Rs. 10,000 of income, 10 percent on the next Rs 20,000 and 12 percent on the next Rs 30,000 would be: |
| A. | progressive |
| B. | degressive |
| C. | regressive |
| D. | proportional |
| Answer» A. progressive | |
| 19. |
Which of the following taxes is the most likely to be regressive? |
| A. | sales tax on mobile phone |
| B. | excise duties on kerosene |
| C. | import duties on electronic goods |
| D. | entrainment tax |
| Answer» B. excise duties on kerosene | |
| 20. |
Impact of tax refers to: |
| A. | initial resting place of the burden of tax |
| B. | tax evasion |
| C. | the final money burden of tax |
| D. | none of these |
| Answer» A. initial resting place of the burden of tax | |
| 21. |
Fiscal policy is the policy of: |
| A. | rbi |
| B. | nabard |
| C. | government |
| D. | all the above |
| Answer» C. government | |
| 22. |
The principle of judging fiscal measures by the way they work is called: |
| A. | personal finance |
| B. | public finance |
| C. | functional finance |
| D. | local finance |
| Answer» C. functional finance | |
| 23. |
When individuals with unequal tax paying ability should be taxed unequally in order to equalise sacrifice is called: |
| A. | horizontal equity |
| B. | vertical equity |
| C. | tax paying ability |
| D. | none of these |
| Answer» C. tax paying ability | |
| 24. |
The following is an example of direct taxes: |
| A. | sales tax |
| B. | income tax |
| C. | estate duties |
| D. | toll tax |
| Answer» B. income tax | |
| 25. |
If the rate of tax falls with an increase in income, it is called: |
| A. | proportional tax |
| B. | progressive tax |
| C. | regressive tax |
| D. | none of these |
| Answer» C. regressive tax | |
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