QUESTIONS OF PUBLIC FINANCE
1.
Club good theory was introduced by
(a)
Samuelson
(b)
Pauly
(c)
Buchanan
(d)
Wooers
2.
Which is not a characteristics of club goods.
(a)
Impure public goods
(b)
Pure public goods
(c)
Exclusion
(d)
Divisibility
3.
In addition of new members to club what does not
occurs?
(a)
Slipover benefits
from one club goods to another
(b)
Congestion
(c)
Crowding effect
(d)
Reduce average cost
4.
For pure public goods marginal cost is
(a)
1
(b)
-1
(c)
0
(d)
None of the above
5.
If there is no psychological congestion cost,
then optimal members of club occurs where
(a)
MC of
membership=AC of membership
(b)
MC of membership<AC of membership
(c)
MC of membership>AC of membership
(d)
None of the above
6.
Which is an objectives of budget policy
(a)
proper allocation of resource
(b)
Equitable distribution of income & wealth
(c)
Economic stability
(d)
All of the above
7.
In balance budget the relation between benefit from
public wants and opportunity cost is
(a)
Benefit from satisfaction
of public wants equal to opportunity cost from private wants
(b)
Benefit from
satisfaction of public wants greater than opportunity cost from private wants
(c)
Benefit from satisfaction of public wants less
than opportunity cost from private wants
(d)
None
8.
Public finance deals with
(a)
Household budget
(b)
Govt. budget
(c)
Company budget
(d)
None
9.
Production tax is
(a)
Direct tax
(b)
Indirect tax
(c)
Both(a)&(b)
(d)
None
10.
Incidence of tax can be passed to others
(a)
Direct tax
(b)
Indirect tax
(c)
Both(a)&(b)
(d)
None
11.
Shifting of tax is possible when demand for
commodity is
(a)
More elasticity
(b)
Less elasticity
(c)
Inelastic
(d)
Unitary elasticity
12.
Shifting of tax is possible when supply of
commodity is
(a)
More elasticity
(b)
Less elasticity
(c)
Inelastic
(d)
Unitary elasticity
13.
In the situation of deflation the tax is imposed
on consumption, consumption will
(a)
Increase
(b)
Decrease
(c)
No affected
(d)
None
14.
From allocation point of view which tax is
better
(a)
Direct tax
(b)
Indirect tax
(c)
Both(a)&(b)
(d)
None
15.
What nature of public expenditure in the period
of recession
(a)
Short run
(b)
Long run
(c)
Very short run
(d)
None
16.
The non-tax revenue is
(a)
Revenue from public expenditure
(b)
Grant and gifts
(c)
Selling the goods and services
(d)
All
17.
The main objective of fiscal policy in underdeveloped
countries is
(a)
Economic development
(b)
Economic
stability
(c)
Economic disparity
(d)
None
18.
Primary deficit is
(a)
Fiscal deficit-Interest payment
(b)
Fiscal deficit- Market borrowing
(c)
Total expenditure – Total receipt
(d)
Fiscal deficit –
Net interest payment
19.
Characteristics of private goods
(a)
Rivalry
(b)
Exclusion
(c)
Both(a)&(b)
(d)
None
20.
Nature of public expenditure is
(a)
Productive
(b)
Non-productive
(c)
Uncertain
(d)
All
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