Public Economics Questions and Answers in Quiz Form 9 for Practice

121. Gift tax was introduced in the year

1. 1958
2. 1959
3. 1960
4. 1961

122. Grants recommended by the Finance Commission are known as

1. Plan grants
2. Conditional Grants
3. Statutory grants
4. Conditional grants

123. In India GST was introduced in the year

1. 2016
2. 2017
3. 2018
4. 2019

124. In India, personal income tax is levied on individuals by

1. Central Government
2. State Government
3. Local bodies
4. None of these

125. In proportional tax system, the rates of tax remain

1. Constant
2. increasing
3. decreasing
4. zero

126. In the case of direct tax, impact and incidence are on

1. Different person
2. Same person
3. Sellers
4. None of these

127. In the case of regressive tax, the rate of tax.....................as income increases

1. increases
2. remains constant
3. Decreases
4. None

128. In the following which is the characterstic of a tax

1. Compulsory
2. optional
3. forced
4. nationality

129. In which year GST was first introduced

1. 1952
2. 1953
3. 1954
4. 1955

130. Incidence of a tax refers to the........................burden of tax

1. Initial
2. Ultimate
3. Intermediate
4. None

131. Incidence of tax means

1. Direct money burden
2. indirect money burden
3. actual tax burden
4. none of these

132. Indirect taxes have an element of

1. Equitable
2. certainity
3. economical
4. encourage honesty

133. Laffer curve suggest that the

1. Relationship between tax revenue and tax rates is U-shaped
2. Relationship between GDP growth rate and tax rates is U-shaped
3. Relationship between tax revenue and tax rates is inverted U-shaped
4. Relationship between savings rate and tax rate is inverted U-shaped

134. Marginal cost of providing the public goods to additional consumers is

1. 1
2. 2
3. 3

135. Market failure refers to a situation when

1. Market does not function
2. market solution occurs if government intervenes
3. Social efficiency is not achieved
4. perfectly competitive firm experiences P is greater than MC