Economics/Economics Public Finance Sample Test,Sample questions

Question:
  40% of income of federal government is obtained from:

1. Income tax

2.Excise tax

3.Import tax

4.Property tax


Question:
  A country has proportional system of taxation. A person pays Rs 500 tax when his income is 5000  how much tax he will pay if his earning rises to 8000:

1.200

2.400

3.600

4.800


Question:
  A direct tax is that which:

1. Is heavy burden on the tax payers

2.Can be directly deposited in the banks

3.Can not be evaded

4.Is paid by the person on whom it is levied


Question:
  Federal government transfers to provinces as their share in tax collection:

1.Less than 40%

2.More than 40% but less than 60%

3.More than 60%

4.More than 90%


Question:
  Government finance is called:
 

1. National finance

2.Public finance

3.Private finance

4.(a) and (b) of above


Question:
  Govt. budget is balanced when:

1.Govt. expenditure is kept to the minimum

2.Govt. income consists of both tax and non-tax income

3.Government expenditure equals tax revenue

4.None of the above


Question:
  Govt. taxing and spending policies are called:

1.Monetary policy

2.Fiscal policy

3.Commercial policy

4.Finance policy


Question:
  In Pakistan  income tax is collected by:

1.Local govt

2. Provincial govt

3.Federal govt.

4.All governments


Question:
  In Pakistan  the authority to levy taxes lies with:

1.Prime minister of Pakistan

2.President of Pakistan

3.Federal cabinet of ministers

4.National assembly


Question:
  In Pakistan Income tax is:

1.Progressive tax

2.Proportional

3.Direct

4.(a) and (c) of above


Question:
  It is easy and convenient to pay:

1.Direct tax

2.Indirect tax

3.Proportional tax

4.Progressive tax


Question:
  Pakistan s fiscal year starts from:
 

1.1st September

2.1st January

3.1st April

4.1st July


Question:
  Pakistan s public debt is:

1.Larger than GNP

2.Approximately equal to GNP

3. Smaller than GNP

4.Smaller than our exports


Question:
  The Federal budget is presented in the parliament by:

1.Prime minister

2.President

3.Finance minister

4.Commerce minister


Question:
  The federal budget of Pakistan includes:

1.Direct taxes and indirect taxes

2.Proportional and progressive taxes

3.Simple and difficult taxes

4.(a) & (b) of above


Question:
  This is principle of taxation

1.Principle of honesty

2.Principle of morality

3.Principle of secrecy

4.Principle of economy


Question:
  Which is provincial tax in Pakistan:

1.Excise tax

2.Sales tax

3.Import duty

4.Motors token tax


Question:
 Federal government tax revenue collection includes:

1.Divisible taxes with provinces

2.Divisible taxes with district govt.

3.Non-tax revenue

4.All of the above


Question:
 Govt. taxing and spending policies are called:

1.Monetary policy

2.Fiscal policy

3.Commercial policy

4.Finance policy


Question:
 If Income tax is assessed as Rs. 100 on an income of Rs. 1000. Compared to this  which one of the following indictes that the income tax rate is progressive?

1.Rs. 150 tax on Rs. 2000 income

2.Rs. 350 tax on Rs. 3000 income

3.Rs. 400 tax on Rs. 4000 income

4.Rs. 450 tax on Rs. 5000 income


Question:
 Income tax in Pakistan is:

1.Direct and progressive

2.Direct and proportional

3.Indirect and progressive

4.Indirect and proportional


Question:
 It is better way to finance the govt. budget:

1.By taxing people

2.By printing new money

3.By borrowing from banks

4.By fining people doing illegal activities


Question:
 It is direct tax:

1.Excise tax

2.Sales tax

3.Income tax

4.Custom duty


Question:
 One of the following is NOT a feature of private finance:

1.Balancing of income and expenditure

2.Secrecy

3. Saving some part of income

4.Publicity


Question:
 Pakistan s expenditure on defence is:

1.10% of federal budget

2.More than 10% but less than 25%

3.More than 25% but less than 35%

4.More than 35% but less than 45%


Question:
 Taxes are levied to:

1.Penalise people

2.Provide direct benefits to tax payers

3.Provide general benefits for the people

4.To accumulate funds


Question:
 The government can collect funds from:

1.Taxes

2.Fees

3.Prices of public goods

4.All the three


Question:
 To control inflation the government should increase:

1.Budget deficit

2.Consumer spending

3.Income tax

4.Pensions


Question:
 Which is not counted as public expenditure?

1.Subsidy given to local city bus service

2.Defence expenditure

3.Investment spending by public companies

4.Interest payment on national debt.


Question:
 Which is true:

1.Federal govt. collects taxes and shares with provinces

2.Provincial govt. collects taxes and shares with federal govt.

3.Federal govt. collects taxes and shares with local govts.

4. Local govts. Collects taxes and shares with federal govt.


Question:
 Which of the following should NOT be the aim of a government:

1.Economic growth

2.Full employment

3.Inequality of incomes

4.Price stability


Question:
 Whom of the following propounded principles of taxation:

1.Keynes

2.Marshall

3.Adam Smith

4.Al Ghazali


Question:
According to total amount collected the taxes fall in this order:

1.Custom excise sales

2.Sales custom excise

3.Custom sales excise

4.Excise sales custom


Question:
According to total amount collected the taxes fall in this order:

1.Custom sales tax income tax

2.Custom income tax sales tax

3.Income tax custom sales tax

4.Sales tax custom excise


Question:
Exemption limit for income tax in Pakistan is:

1.10 lakh

2.5 lakh

3.3 lakh

4.1 lakh


Question:
Federal govt. budget estimate for 2010-11 is:

1.2800 million

2.2800 billion

3.2800 trillion

4.Bigger than 2800 trillion


Question:
Government finance is called:

1.National finance

2.Public finance

3.Official finance

4.(a) & (b) of above


Question:
Government of Pakistan can increase its resources by:

1.Taxing people

2.Printing new notes

3.Borrowing

4.All the three


Question:
Govt. budget is balanced when:

1.Govt. expenditure outstrips tax receipts

2. Govt. tax receipts outstrips expenditure

3.Government expenditure equals tax revenue

4.None of the above


Question:
Govt. prepares its budget:

1.Weekly

2.Monthly

3.Quarterly

4.Annually


Question:
How the government can meet its expenditure:

1.By taxing people

2.By borrowing from banks and other governments

3.By printing new money

4.By all the three methods


Question:
If a person who is tax-payer can shift the burden of tax to someone else  the tax is called:

1.Movable tax

2.Indirect tax

3.Transfer tax

4.Undesirable tax


Question:
In Pakistan  taxes are levied by:

1.Prime minister of Pakistan

2.President of Pakistan

3.Federal cabinet of ministers

4.National assembly


Question:
In Pakistan government budget is prepared by:

1.National Assembly

2.President of Pakistan

3.Ministry of Finance

4.State Bank of Pakistan


Question:
In Pakistan government budget is prepared by:

1.National assembly

2.President of Pakistan

3.Ministry of Finance

4.State Bank of Pakistan


Question:
In Pakistan Income tax is:

1.Progressive tax

2.Proportional

3.Direct

4.(a) and (b) of above


Question:
In past decades Pakistan increased its GDP  yet living standard of majority has not risen. The most important cause of this situation is:

1.Increased govt. expenditure

2. Increased imports

3.Increased education

4. Increased population


Question:
It is a source of revenue for the Local overnment bodies:

1.Corporation tax

2.Value added tax

3.Excise tax

4.Property tax


Question:
It is difficult to evade:

1.Direct tax

2.Indirect

3.Proportional

4.Progressive tax


Question:
It is direct tax:
 

1.Property tax

2.Income tax

3.Import tax

4.All are indirect taxes


Question:
Mansoor Software Co imported computers and paid import tax. Burden of tax will be on:

1.Importer

2.Wholesaler

3.Last buyer

4.Retailer


Question:
Net taxes are:

1.Domestic taxes minus foreign taxes

2.Business taxes minus personal taxes

3.Total taxes minus govt. transfer payments

4.Total taxes minus govt. purchases


Question:
One of the following is NOT a feature of private finance:

1.Publicity

2.Secrecy

3.Efforts to balance income and expenditure

4.Taking steps to increase income


Question:
Pakistan s Budget has parts:

1.Current and development

2.Revenue and expenditure

3.Development and non-development

4.Both (a) and (b)


Question:
Progressive taxes:

1.Increase government revenue

2.Bring equality in distribution of incomes

3.Act as penalty for rich people

4.Both (a) & (b)


Question:
Progressive taxes:

1.Increase government revenue

2.Bring equality in distribution of incomes

3.Compel rich people to be honest

4.(a) & (b) of above


Question:
Rate of General Sales Tax (GST) is:

1.Less than 10%

2.More than 10% but less than 20%

3.More than 20% but less than 30%

4.More than 30% but less than 40%


Question:
Sales tax in Pakistan is:

1.Direct and progressive

2.Direct and proportional

3.Indirect and progressive

4.Indirect and proportional


Question:
Tax is a payment:

1.Compulsory

2.Voluntary

3.Unnecessary

4.Temporary


Question:
Taxes on commodities are:

1.Direct taxes

2.Indirect taxes

3.Progressive taxes

4.Proportional taxes


Question:
The budget estimate prepared by ministry of finance is finally approved by:

1.State Bank

2.President

3.Senate

4.National Assembly


Question:
The government can meet its expenditure:

1.By taxing people

2.By printing new money

3.By borrowing from banks and foreign countries

4.By all the three methods


Question:
The main source of revenue of federal government is:

1.Property taxes

2.Token tax

3.Custom duties

4.Sales tax


Question:
The most important body to collect taxes in Pakistan is:

1.District govts.

2.State Bank

3.Ministry of finance

4.FBR


Question:
The most important source of income of a government is:

1.Foreign loans

2.Taxes

3.Printing of new money

4.Sale of government property


Question:
The most important source of income of a government is:

1.Foreign loans

2.Sprinting of new money

3. Sale of government property

4.Taxes


Question:
The non-Muslims pay Zakat:

1.At a higher rate than Muslims

2.At a lower rate than Muslims

3.At the same rate

4.Do not pay Zakat


Question:
These are heads of expenditure of the government EXCEPT?

1.Provide social services

2.Defence

3.Improve transport and communication

4.Provide cosmetics


Question:
These are principles of taxation:

1.Principle of equality

2.Principle of certainty

3.Principle of secrecy

4.Both (a) & (b)


Question:
These are principles of taxation:

1.Equality and certainty

2.Certainty and morality

3.Flexibility and durability

4.Durability and rigidity


Question:
This is NOT a principle of taxation:

1.Principle of equality

2.Principle of certainty

3.Principle of secrecy

4.Principle of economy


Question:
This tax is a good example of ability to pay principle of taxes:

1. Excise tax on cigarettes

2.Highway toll tax

3.Proportional sales tax

4.Personal income tax


Question:
To bring equitable distribution of income in the country taxes should be

1.Direct

2.Indirect

3.Proportional

4.Progressive


Question:
What is the benefit of tariffs:

1.Increased choice

2.Increased government revenue

3.More competition

4.More trade


Question:
Which is true about amount of taxes collected in Pakistan:

1.Direct taxes are more than indirect taxes

2.Indirect taxes are more than direct taxes

3.Provincial taxes are more than federal

4.Provincial govts. Share taxes with federal govt.


Question:
Which is true?

1.Federal govt. has the right to collect taxes

2.Provincial govt. has the right to collect taxes

3.Local govt. has the right to collect taxes

4.All of the above is true


Question:
Which of the following tax is best example of ability to pay principle of taxes:

1.Excise tax on cigarettes

2.Highway toll tax

3.Proportional sales tax

4.Personal income tax


Question:
Which of the following would cause incomes to become more unequal:

1.Increased employment

2.Increased unemployment allowance

3.More progressive taxes

4.More regressive taxes


Question:
Which one is not a principle of taxation:

1.Principle of equality

2.Principle of certainty

3.Principle of morality

4.Principle of diversity


Question:
Which source a private company cannot use?

1.A bank loan

2.A bank overdraft

3.Selling new shares in stock exchange

4.Deficit finance (new money)


Question:
Which tax better conforms to the principle of equality in taxation

1.Progressive tax

2.Regressive tax

3.Proportional tax

4.Fixed tax


Question:
Which tax is not shared between central and provincial governments?

1.Excise tax

2.Sales tax

3.Custom duty

4.Property tax


Question:
Zakat can be spent for this purpose:

1.Payment of fee of a poor child

2.Performing Hajj

3.Help poor parents

4.All of the above


Question:
Zakat is not due on the gold owned by a person who has less than:

1.60 tolas

2.30 tolas

3.15 tolas

4.7.5 tolas


More MCQS

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  6. Indian Economy for Competitive Examinations
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  10. Economic Growth and Development
  11. Economics Money Banking and International Trade
  12. Economics Nature and Scope of Economics
  13. Economics Production and Production Function
  14. Economic Development and Planning
  15. Economics Balance of Payments
  16. Economics Central Bank
  17. Economics Equilibrium Of National Income
  18. Economics International Economic Organisations
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  22. Economics Money and Value of Money
  23. Economics Demand and Supply Set-1
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  26. Economics Scale Of Production and Laws of Returns
  27. Economics Transport Communication and Human Resources
  28. Economics Wages Rent Interest and Profit
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  30. Economics Great Economists and Their Work Set-1
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  35. Economics World Economy
  36. Economics National Income Accounting Set-2
  37. MCQ Indian Economy Set 5
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