Q. The Benefit Principle of taxation states that tax should be paid in proportion to:
✅ Correct Answer: (C)
benefit
Public Finance MCQs and Notes
Q. When expenditure exceeds total tax revenue, it is called:
✅ Correct Answer: (A)
surplus budget
Q. The existence of economic inequalities among the states is known as
✅ Correct Answer: (B)
horizontal imbalance
Q. The diffusion theory was associated with the name of
✅ Correct Answer: (D)
mansfield
Q. The movement from older level of expenditure and taxation to a new and higher level is called
✅ Correct Answer: (C)
displacement effect
Q. ______________________ is the first country to implement GST
✅ Correct Answer: (D)
france
Q. _________ is a broad based and a single comprehensive tax levied on goods and services consumed in an economy
✅ Correct Answer: (C)
gst