Business Economics IV
Business Economics 4 Second Year B.Com Sem 4 MCQ Collection
01) Special assessment also means-----------
- Tax revenue
- Betterment levy
- VAT
- Fines
Answer: tax revenue
02) The"Law of increasing state expediture" was put forward by-----------
- Hugh Dalton
- Adolph Wagner
- Jack Wiseman
- Alan T.Peacock
Answer: Adolph Wagner
03) The term functional finance was introduced by------
- J.M.Keynes
- Richard Musgrave
- Huge Dalton
- A.P.Learner
Answer: A.P.Learner
04) The economist associated with the principle of Maximum Social Advantage is------
- Seligman
- Samuelson
- Dalton
- Sweezy
Answer: Dalton
05) When the size of the budget is less than optimum,then-----
- NMB is zero
- MSS<MSB
- MSS=MSB
- NMB is zero
Answer: MSS<MSB
06) The Maximum Welfare Principle of Budget Determination is associated with------
- Hugh Dalton
- Paul Samuelson
- Edwin Seligman
- Richard Musgrave
Answer: Richard Musgrave
07) Productive efficiency is obtained when production is------
- On PPC
- inside PPC
- outside PPC
- in PPC
Answer: on PPC
08) In economics,a difference in access to relevant knowledge is called-------
- An information gap
- A frontier gap
- Information asymmetry
- Access imperfection
Answer: Information asymmetry
09) Market failure results when it fails to------
- earn supernormal profit
- equal distribution income
- achieve pareto optimality
- earn subnormal profit
Answer: achieve pareto optimality
10) Which one of the following is not the characteristics of a tax?
- Compulsory payment
- There is quid-pro-quo
- Involves some sacrifice
- Not involves sacrifice
Answer: There is quid-pro-quo
11) Which of the following is not a non-tax revenue?
- Fees
- Penalties
- Custom duty
- Borrowings
Answer: Custom duty
12) Which of the following is not canons of taxation?
- Canon of equity
- Canon of certainty
- Canon of benefit
- Canon of elasticity
Answer: Canon of benefit
13) Under monopoly the incidence of lumpsome tax is
- on the sellers
- on the buyers
- partially on the sellers
- partially on the buyers
Answer: on the sellers
14) Incidence of tax refers to which of the following?
- Final money burden of a tax
- Initial Money burden of a tax
- Indirect money burden
- Real burden of tax
Answer: Final money burden of a tax
15) When the supply is more elastic supply the incidence of tax is-----
- more on the buyers
- more on the sellers
- borne fully by the buyers
- borne fully by sellers
Answer: more on the buyers
16) In the case of perfectly elastic supply the incidence of tax is-------
- entirely on the buyers
- shifted partially to the buyers
- borne fully by the sellers
- borne fully by buyers
Answer: entirely on the buyers
17) Steep tax-rate will reduce the willingness to-----
- work
- invest
- work & invest
- save
Answer: work & invest
18) Increse in tax will----
- divert the investment
- reduce the investment to zero
- increase the investment
- increase the saving
Answer: divert the investment
19) Tax on rich and luxury goods will------
- increase the investment
- check inflation
- check deflation
- incease savings
Answer: check inflation
20) Progressive taxation is-----
- increases inequality
- reduces inequality
- no impact
- increases equality
Answer: reduces inequality
21) A reduction in tax during depression ------
- decreases conumption
- reduces investment
- increases consumption
- increases investment
Answer: increases consumption
22) Taxation is anti-inflationary if tax is imposed on----
- essential items
- luxuries
- investment
- savings
Answer: luxuries
23) Which of the following canons of public expenditure is very difficult to implement in developing countries?
- Canon of elasticity
- Canon of sanction
- Canon of surplus
- Canon of productivity
Answer: Canon of surplus
24) Which of the following type of public expenditure is characterised by quid-pro-quo?
- Grant
- Subsidy
- Interest
- Purchase prices
Answer: Purchase prices
25) Public expenditure on education and health will have a ------effect on people's ability to work.
- Negative
- Neutral
- Positive
- Stagnating
Answer: Positive