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Question: Which of the following elements of a tax and benefits system is regressive?

  1. a.
    the taxation of capital gains
  2. b.
    the payment of child benefits to families
  3. c.
    specific taxes on beer and tobacco
  4. d.
    rent subsidies to tenants of publicly owned housing
  5. e.
    None of these
Answer: c

Question: Which is the discussion issue of the public finance?

  1. a.
    Govt. revenue
  2. b.
    Govt. monetary policy
  3. c.
    Govt. expenditure
  4. d.
    Govt. revenue and expenditure
  5. e.
    None of these
Answer: d

Question: Which is not a Wing of the National Board of Revenue(NRB)?

  1. a.
    Customs
  2. b.
    Income Tax
  3. c.
    Value Added Tax
  4. d.
    Banking
Answer: d

Question: What is always a characteristic of a public goods?

  1. a.
    Consumption of the good by one individual prevents consumption by any other individual
  2. b.
    It confers benefits on consumers that are greater than they themselves realise
  3. c.
    It is supplied by a voluntary organization
  4. d.
    The benefits it confers on consumers can extended to others at zero cost be
  5. e.
    None of these
Answer: d

Question: Which of the following measure is specifically designed to reduce divergences between private and social cost?

  1. a.
    equal pay legislation
  2. b.
    minimum wage legislation
  3. c.
    the abolition of tuition fees paid by university students
  4. d.
    the introduction of 'bus only' lenes in city centers
  5. e.
    None of these
Answer: c

Question: Which is not a tax?

  1. a.
    VAT
  2. b.
    excise duty
  3. c.
    land revenue
  4. d.
    fine
  5. e.
    none
Answer: b

Question: When a person has to face the burden of tax that has been imposed on him, it is called--

  1. a.
    indirect tax
  2. b.
    direct tax
  3. c.
    VAT
  4. d.
    recreation tax
  5. e.
    none of them
Answer: b

Question: What would cause the value of the accelerator to increase?

  1. a.
    a reduction in tax rates
  2. b.
    an increase in the capital-output ratio
  3. c.
    an increase in the saving ratio
  4. d.
    an increase in the marginal propensity to consume
  5. e.
    None of these
Answer: b

Question: In an economy with a progressive tax system, there is an increase in before tax incomes. What will happen to after-tax incomes?

  1. a.
    They will decrease less than proportionately
  2. b.
    They will decrease more than proportionately
  3. c.
    They will increase less than proportionately
  4. d.
    They will increase more than proportionately
  5. e.
    None of these
Answer: c

Question: Which method of financing government expenditure on higher education is most likely to result in an increase in the money supply?

  1. a.
    selling government bonds to the non-bank general public
  2. b.
    selling government bonds to the central bank
  3. c.
    raising the rate of income tax
  4. d.
    charging all students the full cost of tution fees
  5. e.
    None of these
Answer: b

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