( Best 30+ ) Public Finance MCQ

by Mr. DJ

Public Finance MCQ

Table of Contents

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Public Finance MCQ

Public Finance MCQ

21. Which of the following describes the situation where revenues and expenditures are equal during a given

A. Public Debt

B. Budget Surplus

C. Balanced Budget

D. Budget Deficit

22. Old age pension is “National Old Age Pension Schemes”, “Interest payments”, “Subsidies”, “Unemployment allowances”, “Welfare benefits to weaker sections, etc.” By incurring such expenditure, the government does not get anything in return, but it adds to the welfare of the people, especially belong to the weaker sections of the society. Such expenditure basically results in redistribution of money incomes within the society.

A. Non-Transfer Expenditure

B. Transfer Expenditure or transfer payments

C. Capital Expenditure

D. Non-Distributive Expenditure

23. With increase in urbanization and industrialization, the role of Government started:

A. Declining

B. Increasing

C. Stagnant

D. Unstable

24. The ratio of change in the national income in relation to the change in government spending that causes it is
referred to as:

A. Fiscal Multiplier

B. Spending Ratio

C. Expenditure Ratio

D. Cost Multiplier

25. Expenditures incurred on civil administration, defence forces is in the nature of

A. Capital Expenditure

B. Revenue Expenditure

C. Transfer Expenditure

D. Productive Expenditure

26. The practice by Governments in which a government spends more money than it receives as revenue is
referred to as:

A. Piggy backing

B. Direct Funding

C. Deficit financing

D. Pump Priming

27. Expenditure on defence, interest payments, law and order maintenance and public administration expenses
are generally treated as:

A. Productive Expenditure

B. Unproductive Expenditure

C. Growth-oriented Expenditure

D. Progressive Expenditure

28. Developmental expenditure refers to

A. Revenue Expenditure incurred for meeting current expenses of the Government

B. Capital Expenditure incurred for creating long-term assets of the Government

C. Expenditure which is incurred on activities directly related to economic development

D. Expenditure which is incurred on running the normal government administration

29. The multiplier effect is best described as:

A. the increase in final income arising from any new injection of spending

B. the increase in the expenditure of a country

C. the increase in the public debt of a country

D. the increase in investment of a country

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