Public Finance MCQs and Notes
Q. Mixed goods are those goods having benefits which are:
✅ Correct Answer: (C)
both a & b
Q. Marginal cost of providing the public goods to additional consumers is:
✅ Correct Answer: (A)
0
Q. Fiscal Federalism refers to
✅ Correct Answer: (C)
division of economic functions and resources among different layers of government
Q. The theory of fiscal policy derives from
✅ Correct Answer: (A)
principle of sound finance
Q. According to Peackock Wiseman hypothesis, A discontinuity in the growth pattern which produces expenditure peak during social disturbances is referred to as:
✅ Correct Answer: (A)
displacement effect
Q. Peacock and Wiseman Hypothesis on public expenditure consists of three concepts which are:
✅ Correct Answer: (C)
displacement effect, concentration effect, inspection effect
Q. Cooperative federalism is characterized by
✅ Correct Answer: (B)
a stronger, more influential national government.
Q. The nature of federalism was changed forever by
✅ Correct Answer: (C)
the civil war
Q. If the consumption of Good A by one person does not decrease the consumption of Good A by another person, then the good is said to
✅ Correct Answer: (C)
non-rival.