Public Finance and Fiscal Policy Part 1 Online Test

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

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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