Public Finance Test 02 Mcqs Preparation Online Leave a Comment / Economics / By Shani Malik Public Finance Test 02 Mcqs Preparation Online 1. 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. 800B. 200 C. 400 D. 600 Loading... 2. Which tax better conforms to the principle of equality in taxation?A. Fixed taxB. Proportional tax C. Progressive tax D. Regressive tax Loading... 3. Which source a private company cannot use?A. Deficit finance (new money)B. A bank loan C. A bank overdraft D. Selling new shares in stock exchange Loading... 4. Progressive taxes?A. Compel rich people to be honest B. Bring equality in distribution of incomes C. (a) & (b) of aboveD. Increase government revenue Loading... 5. In Pakistan Income tax is?A. Proportional B. DirectC. (a) and (b) of aboveD. Progressive tax Loading... 6. The most important source of income of a government is?A. Sprinting of new money B. Foreign loans C. Sale of government property D. Taxes Loading... 7. Which is not counted as public expenditure?A. Interest payment on national debt.B. Defence expenditure C. Subsidy given to local city bus service D. Investment spending by public companies Loading... 8. Which one is not a principle of taxation?A. Principle of morality B. Principle of diversityC. Principle of certainty D. Principle of equality Loading... 9. Net taxes are?A. Domestic taxes minus foreign taxes B. Total taxes minus govt. purchasesC. Total taxes minus govt. transfer payments D. Business taxes minus personal taxes Loading... 10. 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. 400 tax on Rs. 4000 income B. Rs. 450 tax on Rs. 5000 incomeC. Rs. 350 tax on Rs. 3000 incomeD. Rs. 150 tax on Rs. 2000 income Loading... Loading... Related NTS Results Post:Chemistry MCQs Test 05 Online PreparationBiology Mcqs Test 14 Online PreparationIslamiat Mcqs Test 01 Online PreparationIslamiat Mcqs Test 02 Online PreparationChemistry MCQs Test 07 Online PreparationChemistry MCQs Test 06 Online PreparationIslamiat Mcqs Test 03 Online PreparationBiology Mcqs Test 12 Online Preparation