Public Finance-Online Practice Exam 3
Public Finance-Online Practice Exam 3

Public Finance-Online Practice Exam 3

NET / SET Online Practice Exams

Public Finance

Test

Multi-choice 3

Question

1. According to JR. Hicks, technical progress is said to be neutral if it raises–

Answers

the average productivity of labour and capital in the same proportion

the marginal physical productivity of labour and capital in the same proportion

the wage rate and the interest rate in the same proportion 

the interest-rate and the profit-rate in the same proportion

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Question

2. Budgetary deficit does not take into account-

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interest payment on public debt

revenue deficit

balance of payment deficit

capital budget deficit

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Question

3. Tobin tax is a tax on-

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sales

transactions in foreign exchange

exports

imports

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Question

4. The Principle of Maximum Social Advantage is

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Taxation only

Expenditure only

Public debt only

Both taxation and public expenditure

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Question

5. The receipts from disinvestment of public sector undertakings are shown under which one of the following sub heads in the budget of the Government of India?

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Revenue receipts

Non-tax revenue receipts

Non-debt capital receipts 

Debt capital receipts

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Question

6. Which one of the following is not a source of the state tax revenue ?

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Land revenue

Motor vehicles tax

Corporate tax

Entertainment tax

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Question

7. Cannon of equity in taxation is generally considered to be satisfied by

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Lamp sum tax

Progressive taxation

Regressive taxation

Proportional taxation

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Question

8. Measures to unearth black money are

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Special Bearer Bonds

Voluntary Disclosure Scheme 

Demonetisation

Foreign Remittance Scheme and Gold Bond

All of the above

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Question

9. The causes of black money are–

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Public expenditure programme

Inflation

Political finance and standard of Public morality

All of the above

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Question

10. According to Raja J. Chelliah  the black money is generated at the rate of — the country’s GDP.

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20%

40%

10%

15%

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