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Questions on Public Finance | Public Finance MCQs

(1) The budget estimate prepared by ministry of finance is finally approved by:
[A] State Bank
[B] President
[C] Senate
[D] National Assembly
Answer: National Assembly
(2) Federal govt. budget estimate for 2010-11 is:
[A] 2800 million
[B] 2800 billion
[C] 2800 trillion
[D] Bigger than 2800 trillion
Answer: 2800 billion

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(3) Government of Pakistan can increase its resources by:
[A] Taxing people
[B] Printing new notes
[C] Borrowing
[D] All the three
Answer: All the three
(4) The non-Muslims pay Zakat:
[A] At a higher rate than Muslims
[B] At a lower rate than Muslims
[C] At the same rate
[D] Do not pay Zakat
Answer: Do not pay Zakat
(5) To control inflation the government should increase:
[A] Budget deficit
[B] Consumer spending
[C] Income tax
[D] Pensions
Answer: Income tax
(6) In past decades Pakistan increased its GDP, yet living standard of majority has not risen. The most important cause of this situation is:

[A] Increased govt. expenditure
[B] Increased imports
[C] Increased education
[D] Increased population
Answer: Increased population
(7) Which of the following should NOT be the aim of a government:
[A] Economic growth
[B] Full employment
[C] Inequality of incomes
[D] Price stability
Answer: Inequality of incomes
(8) Which of the following would cause incomes to become more unequal:
[A] Increased employment
[B] Increased unemployment allowance
[C] More progressive taxes
[D] More regressive taxes
Answer: More regressive taxes
(9) What is the benefit of tariffs:
[A] Increased choice
[B] Increased government revenue
[C] More competition
[D] More trade
Answer: Increased government revenue
(10) Pakistan's public debt is:
[A] Larger than GNP
[B] Approximately equal to GNP
[C] Smaller than GNP
[D] Smaller than our exports
Answer: Smaller than GNP

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