Q. The tax levied on the interstate trade of goods is
✅ Correct Answer: (D)
central sales tax
Public Finance MCQs and Notes
Q. The government can collect funds from
✅ Correct Answer: (D)
all the three
Q. Government budget is balanced when
✅ Correct Answer: (C)
govt. expenditure equals tax revenues
Q. Which one of the following is not a feature of private finance:
✅ Correct Answer: (D)
publicity
Q. Unfunded debts are those debts which are paid back within …………
✅ Correct Answer: (B)
one year
Q. Who deals with income and expenditure of public authorities?
✅ Correct Answer: (A)
public finance
Q. Statutory incidence of a tax deals with
✅ Correct Answer: (C)
the person(s) legally responsible for paying the tax.
Q. Progressive Tax System is that system in which what happens in the rate of tax if there is an increase in income?
✅ Correct Answer: (C)
growth
Q. If the public debt can be financed without adding to inflation or causing interest rates to rise, it is said to be:
✅ Correct Answer: (C)
sustainable