Economics Public Finance Test 02 Mcqs Preparation Online Public Finance Test 02 Mcqs Preparation Online 1. In Pakistan Income tax is?A. DirectB. (a) and (b) of aboveC. Proportional D. Progressive tax Loading... 2. The most important source of income of a government is?A. Foreign loans B. Sale of government property C. TaxesD. Sprinting of new money Loading... 3. 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. 350 tax on Rs. 3000 incomeB. Rs. 450 tax on Rs. 5000 incomeC. Rs. 150 tax on Rs. 2000 income D. Rs. 400 tax on Rs. 4000 income Loading... 4. Progressive taxes?A. Compel rich people to be honest B. (a) & (b) of aboveC. Increase government revenue D. Bring equality in distribution of incomes Loading... 5. Which is not counted as public expenditure?A. Interest payment on national debt.B. Defence expenditure C. Investment spending by public companies D. Subsidy given to local city bus service Loading... 6. Which one is not a principle of taxation?A. Principle of morality B. Principle of diversityC. Principle of certainty D. Principle of equality Loading... 7. Which source a private company cannot use?A. A bank overdraft B. Deficit finance (new money)C. A bank loan D. Selling new shares in stock exchange Loading... 8. Which tax better conforms to the principle of equality in taxation?A. Proportional tax B. Regressive tax C. Progressive tax D. Fixed tax Loading... 9. Net taxes are?A. Total taxes minus govt. transfer payments B. Business taxes minus personal taxes C. Total taxes minus govt. purchasesD. Domestic taxes minus foreign taxes Loading... 10. 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. 600 B. 400 C. 200 D. 800 Loading... Loading... Related PostsPublic Finance Test 01 Mcqs Preparation OnlinePublic Finance Test 04 Mcqs Preparation OnlinePublic Finance Test 05 Mcqs Preparation OnlinePublic Finance Test 06 Mcqs Preparation OnlinePublic Finance Test 07 Mcqs Preparation OnlinePublic Finance Test 02 Mcqs Preparation Online Continue Reading Previous Public Finance Test 02 Mcqs Preparation OnlineNext Public Finance Test 04 Mcqs Preparation Online Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Δ