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Free download in PDF Public Finance Multiple Choice Questions and Answers for competitive exams. These short objective type questions with answers are very important for Board exams as well as competitive exams like UPSC, NDA, SSC etc. These short solved questions or quizzes are provided by Gkseries./p>
(1)
In Pakistan Income tax is:
[A]
Progressive tax
[B]
Proportional
[C]
Direct
[D]
(a) and (b) of above
Answer: (a) and (b) of above
(2)
Which tax better conforms to the principle of equality in taxation
[A]
Progressive tax
[B]
Regressive tax
[C]
Proportional tax
[D]
Fixed tax
(3)
Which one is not a principle of taxation:
[A]
Principle of equality
[B]
Principle of certainty
[C]
Principle of morality
[D]
Principle of diversity
Answer: Principle of morality
(4)
A country has proportional system of taxation. A person pays Rs 500 tax when his income is 5000, how much tax he will pay if his earning rises to 8000:
[A]
200
[B]
400
[C]
600
[D]
800
(5)
Which source a private company cannot use?
[A]
A bank loan
[B]
A bank overdrafte
[C]
Selling new shares in stock exchangee
[D]
Deficit finance (new money)
Answer: Deficit finance (new money)
(6)
Net taxes are:
[A]
Domestic taxes minus foreign taxes
[B]
Business taxes minus personal taxes
[C]
Total taxes minus govt. transfer payments
[D]
Total taxes minus govt. purchases
Answer: Total taxes minus govt. transfer payments
(7)
Which is not counted as public expenditure?
[A]
Subsidy given to local city bus service
[B]
Defence expenditure
[C]
Investment spending by public companies
[D]
Interest payment on national debt.
Answer: Investment spending by public companies
(8)
If Income tax is assessed as Rs. 100 on an income of Rs. 1000. Compared to this, which one of the following indictes that the income tax rate is progressive?
[A]
Rs. 150 tax on Rs. 2000 income
[B]
Rs. 350 tax on Rs. 3000 income
[C]
Rs. 400 tax on Rs. 4000 income
[D]
Rs. 450 tax on Rs. 5000 income
Answer: Rs. 350 tax on Rs. 3000 income
(9)
The most important source of income of a government is:
[A]
Foreign loans
[B]
Sprinting of new money
[C]
Sale of government property
[D]
Taxesd
(10)
Progressive taxes:
[A]
Increase government revenue
[B]
Bring equality in distribution of incomes
[C]
Compel rich people to be honest
[D]
(a) & (b) of above
Answer: (a) & (b) of above
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