Public Finance and Fiscal Policy Part 1 Online Test

Which of the following holds true for an Indirect Tax?
Points of Impact and Incidence are different
Points of Impact and Incidence are same
The Tax is levied on property
The Tax is levied on all kinds of Income
The Tax is levied on wealth
Taxes fall under the head of:
Actual Sales
Capital Receipts
Revenue Receipts
Budgetary Expenditure
Public Debt
Which rate of Tax falls with an increase in Income?
Regressive Tax
Multiple Tax
Specific Tax
Proportional Tax
Progressive Tax
Which of the following was not initially identified as a Canon of Taxation by Adam Smith?
None of the above
Canon of Certainty
Canon of Ability
Canon of Convenience
Canon of Elasticity
The term Revenue Deficit refers to the difference between the:
All of the above
Revenue Receipts and Revenue Expenditure
Total Tax Revenue and Total Expenditure
Net Government Surplus on Monetary Receipts
The Credit and Debit balance of the Central Bank
Gross Fiscal Deficit is:
Government’s total Non-Plan Expenditure
Excess of the total Government Expenditure over revenue Receipts and Grants
The difference between the Government’s Non-Plan and Plan Expenditure
The difference between the Developmental Expenditure and Capital Loss
The difference between the Non-Developmental Expenditure and Capital Gain
Excise Duty is levied on:
None of the above
Actual Sales
Immovable Property
Primary Deficit is Fiscal Deficit less:
Net Interest Payments
Borrowings from Federal Reserve
Interest Receipts
Interest Payments
Financial Transactions
Efficient Fiscal Management exists when the Revenue meets Revenue Expenditure as well as: I Budgetary Expenditure II Government Liabilities III Capital Expenditure
II and III
I and II
III only
II only
I only
The Principle of Maximum Social Advantage has the following limitations: I Lack of objective measurement II Presence of non-economic implications like Political factors III Difficulty in applying Marginal Analysis to Government Public Expenditure
I, II and III
II and III
III only
II only
I only

The Government and other Public authorities undertake a number of financial activities. The expenditures and the tools to finance the Government expenditures form an important part of the study of Public Finance. Here is a 7-minute short Multiple Choice questions test relating to the various aspects of Public Expenditure, Public Revenue, Public Debt, Financial Administration, Public Finance and Fiscal Policy. While taking this test, go through all the options very carefully and then, mark your answers

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