Public Finance-Online Practice Exam 6
Public Finance-Online Practice Exam 6

Public Finance-Online Practice Exam 6

NET / SET Online Practice Exams

Public Finance

Test

Multi-choice 6

Question

1. The Wanchoo Committee (1971) probed

Answers

Indirect Taxes

Agricultural holding tax

Non-tax revenue

Direct taxes

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Question

2. A state Government draws its revenue from-

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Taxes on agricultural income

Taxes on road vehicles

Taxes on advertisements and sale of goods

All of the above

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Question

3. Assertion (A): The Central Government cannot impose agricultural income tax.

Reason (R): State Governments have refused to allow the Centre to impose and collect agricultural income tax as agriculture is a State subject. 

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(A) is correct but (R) is incorrect

(A) and (R) are wrong

Both (A) and (R) are correct, but (R) does explain (A)

Both (A) and (R) are correct, but (R) correctly explains (A)

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Question

4. To reach an economically efficient output level, the size of an excise tax impaired on a firm generating negative externality should be-

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The firms marginal cost

The social marginal cost

The difference between the social marginal cost and firm’s marginal cost

The sum of the social marginal cost and the firm’s marginal cost

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Question

5. Which authority recommends the principles governing the grants-in-aid of the revenues of the states out of the Consolidated Fund of India ?

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Inter-State Council

Finance Commission

Union Ministry of Finance

Public Accounts Committee

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Question

6. Expenditure tax was first imposed in India in 1957 on the recommendations of-

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Nicholas Kaldor

Hugh Dalton

B.R. Shenoy

TT. Krishnamachari

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Question

7. Which of the following does not form the part of capital receipts of the Union Government?

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Net external assistance

Non-tax revenue

Net market borrowings

Loan recoveries

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Question

8. The revenue of the state governments are raised from the following sources, except-

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Expenditure tax

Entertainment tax

Agricultural income tax

Land revenue

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Question

9. The Indian income tax is- 

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Direct and progressive

Indirect and progressive

Indirect and proportional

Direct and proportional

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Question

10. Which of the following taxes is not a source of revenue of the Union Government?

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Land revenue

Income tax

Corporation tax

Customs duties

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