Public Finance Test 02 Mcqs Preparation Online Shani Malik — April 24, 2018 in Economics • add comment Public Finance Test 02 Mcqs Preparation Online 1. Which tax better conforms to the principle of equality in taxation?A. Progressive tax B. Proportional tax C. Regressive tax D. Fixed tax Loading... 2. Which source a private company cannot use?A. Selling new shares in stock exchange B. Deficit finance (new money)C. A bank loan D. A bank overdraft Loading... 3. In Pakistan Income tax is?A. Progressive taxB. DirectC. (a) and (b) of aboveD. Proportional Loading... 4. Progressive taxes?A. (a) & (b) of aboveB. Compel rich people to be honest C. Bring equality in distribution of incomes D. Increase government revenue 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. 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... 7. Which one is not a principle of taxation?A. Principle of morality B. Principle of certainty C. Principle of equality D. Principle of diversity Loading... 8. 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. 800D. 200 Loading... 9. The most important source of income of a government is?A. TaxesB. Foreign loans C. Sprinting of new money D. Sale of government property 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. 350 tax on Rs. 3000 incomeB. Rs. 150 tax on Rs. 2000 income C. Rs. 400 tax on Rs. 4000 income D. Rs. 450 tax on Rs. 5000 income Loading... Loading...
