Public Revenue Multiple Choice Questions and Answers for Practice

16. Pick out the incorrect statement.

1. In the short period, shifting of a tax is easy
2. In the long period shifting of a tax is easy
3. When supply is elastic, shifting is easy
4. None of the above

17. Pick out the tax which is not a part of indirect tax

1. Excise Duty
2. Sales Tax
3. Entertainment Tax
4. Corporate Tax

18. Pick out the characteristic which is not true of direct tax

1. Simplicity
2. Elasticity
3. Creates Civic Consciousness
4. Encourages savings and investment

19. Pick out the factor which is not a feature of indirect taxes

1. Convenience
2. Tax evasion is difficult
3. Fair to the poor
4. Powerful tool of economic policy

20. Pick out the factor which is not a demerit of indirect taxes

1. Unjust to poor
2. Inflationary in nature
3. A tool of economic policy
4. High administrative cost

21. An ad valorem tax is charged according to the

1. Value of a commodity
2. Weight of the commodity
3. Size of the commodity
4. None of the above

22. Specific duty is charged according to

1. Value of a commodity
2. Weight of the commodity
3. Size of the commodity
4. None of the above

23. An example of direct tax is

1. Sales tax
2. Central excise duty
3. Custom duty
4. Wealth tax

24. .......................based on the principle higher the income, higher the tax

1. Progressive Tax
2. Proportion Tax
3. Regressive Tax
4. Digressive Tax

25. Generally, the nature of indirect tax is

1. Progressive
2. Regressive
3. Proportional
4. None of the above

26. Direct tax are..........................in nature

1. Progressive
2. Equitable
3. Regressive
4. None of the above

27. An increase in the direct tax means it is

1. Inflationary
2. Anti-inflationary
3. Having no impact on price
4. None of the above

28. The term impact of taxation means

1. Initial burden of the tax
2. Ultimate burden of the tax
3. Burden of tax on government
4. None of the above

29. The term incidence of taxation refers to

1. Initial burden of the tax
2. Final burden of the tax
3. Burden of tax on government
4. None of the above

30. The ultimate burden of taxation on producer implies

1. Inelastic Supply and Elastic Demand
2. Elastic Supply and Demand
3. Inelastic Supply and Demand
4. Elastic Supply and Inelastic Demand