Notes Public Finance-Online Practice Exam 1 November 22, 2023 April 19, 2024 NET / SET Online Practice Exams Public Finance Test Multi-choice 1 Question 1. Market borrowings of the Central Government are included in- Answers Option 1 Tax revenue Option 2 Non-tax revenue Option 3 Capital receipts Option 4 None of the above Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 2. In order to reduce inequalities, the government should adopt- Answers Option 1 Regressive system of taxation Option 2 Progressive system of taxation Option 3 Proportional system of taxation Option 4 None of the above Feedback Wrong choice Incorrect option Correct selection Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3. In India, the states get maximum income from- Answers Option 1 Sales Tax Option 2 Land Revenue Option 3 Agriculture income tax Option 4 State excise duties Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 4. Interest payment is an item of- Answers Option 1 Revenue expenditure Option 2 Capital expenditure Option 3 Plan expenditure Option 4 None of the above Feedback Wrong choice Incorrect option Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 5. Loans of Public enterprises is a part of- Answers Option 1 Capital expenditure Option 2 Revenue expenditure Option 3 Both revenue and capital expenditure Option 4 None of the above Feedback Wrong choice Correct selection Wrong choice Incorrect option Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6. All the revenues received, loans raised and money received in repayment of loans by the Union government go into- Answers Option 1 Public Account of India Option 2 Consolidated Fund of India Option 3 Prime Minister’s Relief Fund Option 4 Contingency Fund of India Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 7. Indirect tax are objectionable because they Answers Option 1 Are hard to collect Option 2 Are particularly hard on the rich Option 3 Are regressive Option 4 Do not raise enough revenue Feedback Wrong choice Incorrect selection Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 8. Agricultural Income Tax is- Answers Option 1 Levied and appropriated by the respective states Option 2 Levied by the Union, but collected and appropriated by the respective states Option 3 Levied and collected by the Union, but give over to the respective states Option 4 None of the above Feedback Wrong choice Incorrect option Correct selection Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 9. The Economist on whose suggestions the Wealth Tax, Gift Tax and Expenditure Tax were introduced in India is- Answers Option 1 Kaldor Option 2 Galbraith Option 3 V.KR.V. Rao Option 4 Amarthya Sen Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10. The effect of deficit financing is- Answers Option 1 Always inflationary Option 2 Never inflationary Option 3 Sometimes inflationary and sometimes not so depending on the response of output and the dose of deficit financing Option 4 Always inflationary unless accompanied by effective counteracting measures Feedback Wrong choice Incorrect selection Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Prepared by www.myeconomics.info Next >> "There is no joy in possession without sharing". Share this page. Whatsapp Telegram Facebook Twitter
Multi-choice 1 Question 1. Market borrowings of the Central Government are included in- Answers Option 1 Tax revenue Option 2 Non-tax revenue Option 3 Capital receipts Option 4 None of the above Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 2. In order to reduce inequalities, the government should adopt- Answers Option 1 Regressive system of taxation Option 2 Progressive system of taxation Option 3 Proportional system of taxation Option 4 None of the above Feedback Wrong choice Incorrect option Correct selection Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3. In India, the states get maximum income from- Answers Option 1 Sales Tax Option 2 Land Revenue Option 3 Agriculture income tax Option 4 State excise duties Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 4. Interest payment is an item of- Answers Option 1 Revenue expenditure Option 2 Capital expenditure Option 3 Plan expenditure Option 4 None of the above Feedback Wrong choice Incorrect option Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 5. Loans of Public enterprises is a part of- Answers Option 1 Capital expenditure Option 2 Revenue expenditure Option 3 Both revenue and capital expenditure Option 4 None of the above Feedback Wrong choice Correct selection Wrong choice Incorrect option Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6. All the revenues received, loans raised and money received in repayment of loans by the Union government go into- Answers Option 1 Public Account of India Option 2 Consolidated Fund of India Option 3 Prime Minister’s Relief Fund Option 4 Contingency Fund of India Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 7. Indirect tax are objectionable because they Answers Option 1 Are hard to collect Option 2 Are particularly hard on the rich Option 3 Are regressive Option 4 Do not raise enough revenue Feedback Wrong choice Incorrect selection Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 8. Agricultural Income Tax is- Answers Option 1 Levied and appropriated by the respective states Option 2 Levied by the Union, but collected and appropriated by the respective states Option 3 Levied and collected by the Union, but give over to the respective states Option 4 None of the above Feedback Wrong choice Incorrect option Correct selection Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 9. The Economist on whose suggestions the Wealth Tax, Gift Tax and Expenditure Tax were introduced in India is- Answers Option 1 Kaldor Option 2 Galbraith Option 3 V.KR.V. Rao Option 4 Amarthya Sen Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10. The effect of deficit financing is- Answers Option 1 Always inflationary Option 2 Never inflationary Option 3 Sometimes inflationary and sometimes not so depending on the response of output and the dose of deficit financing Option 4 Always inflationary unless accompanied by effective counteracting measures Feedback Wrong choice Incorrect selection Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback)
Multi-choice 1 Question 1. Market borrowings of the Central Government are included in- Answers Option 1 Tax revenue Option 2 Non-tax revenue Option 3 Capital receipts Option 4 None of the above Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 2. In order to reduce inequalities, the government should adopt- Answers Option 1 Regressive system of taxation Option 2 Progressive system of taxation Option 3 Proportional system of taxation Option 4 None of the above Feedback Wrong choice Incorrect option Correct selection Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3. In India, the states get maximum income from- Answers Option 1 Sales Tax Option 2 Land Revenue Option 3 Agriculture income tax Option 4 State excise duties Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 4. Interest payment is an item of- Answers Option 1 Revenue expenditure Option 2 Capital expenditure Option 3 Plan expenditure Option 4 None of the above Feedback Wrong choice Incorrect option Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 5. Loans of Public enterprises is a part of- Answers Option 1 Capital expenditure Option 2 Revenue expenditure Option 3 Both revenue and capital expenditure Option 4 None of the above Feedback Wrong choice Correct selection Wrong choice Incorrect option Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6. All the revenues received, loans raised and money received in repayment of loans by the Union government go into- Answers Option 1 Public Account of India Option 2 Consolidated Fund of India Option 3 Prime Minister’s Relief Fund Option 4 Contingency Fund of India Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 7. Indirect tax are objectionable because they Answers Option 1 Are hard to collect Option 2 Are particularly hard on the rich Option 3 Are regressive Option 4 Do not raise enough revenue Feedback Wrong choice Incorrect selection Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 8. Agricultural Income Tax is- Answers Option 1 Levied and appropriated by the respective states Option 2 Levied by the Union, but collected and appropriated by the respective states Option 3 Levied and collected by the Union, but give over to the respective states Option 4 None of the above Feedback Wrong choice Incorrect option Correct selection Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 9. The Economist on whose suggestions the Wealth Tax, Gift Tax and Expenditure Tax were introduced in India is- Answers Option 1 Kaldor Option 2 Galbraith Option 3 V.KR.V. Rao Option 4 Amarthya Sen Feedback Correct selection Wrong choice Incorrect option Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10. The effect of deficit financing is- Answers Option 1 Always inflationary Option 2 Never inflationary Option 3 Sometimes inflationary and sometimes not so depending on the response of output and the dose of deficit financing Option 4 Always inflationary unless accompanied by effective counteracting measures Feedback Wrong choice Incorrect selection Wrong choice Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback)
