Business Economics 4 MCQ Collection (Semester 4 Part 1)

Business Economics IV

Business Economics IV

Business Economics 4 Second Year B.Com Sem 4 MCQ Collection

01) Special assessment also means-----------

  1. Tax revenue
  2. Betterment levy
  3. VAT
  4. Fines

Answer: tax revenue

02) The"Law of increasing state expediture" was put forward by-----------

  1. Hugh Dalton
  2. Adolph Wagner
  3. Jack Wiseman
  4. Alan T.Peacock

Answer: Adolph Wagner

03) The term functional finance was introduced by------

  1. J.M.Keynes
  2. Richard Musgrave
  3. Huge Dalton
  4. A.P.Learner

Answer: A.P.Learner

04) The economist associated with the principle of Maximum Social Advantage is------

  1. Seligman
  2. Samuelson
  3. Dalton
  4. Sweezy

Answer: Dalton

05) When the size of the budget is less than optimum,then-----

  1. NMB is zero
  2. MSS<MSB
  3. MSS=MSB
  4. NMB is zero

Answer: MSS<MSB

06) The Maximum Welfare Principle of Budget Determination is associated with------

  1. Hugh Dalton
  2. Paul Samuelson
  3. Edwin Seligman
  4. Richard Musgrave

Answer: Richard Musgrave

07) Productive efficiency is obtained when production is------

  1. On PPC
  2. inside PPC
  3. outside PPC
  4. in PPC

Answer: on PPC

08) In economics,a difference in access to relevant knowledge is called-------

  1. An information gap
  2. A frontier gap
  3. Information asymmetry
  4. Access imperfection

Answer: Information asymmetry

09) Market failure results when it fails to------

  1. earn supernormal profit
  2. equal distribution income
  3. achieve pareto optimality
  4. earn subnormal profit

Answer: achieve pareto optimality

10) Which one of the following is not the characteristics of a tax?

  1. Compulsory payment
  2. There is quid-pro-quo
  3. Involves some sacrifice
  4. Not involves sacrifice

Answer: There is quid-pro-quo

11) Which of the following is not a non-tax revenue?

  1. Fees
  2. Penalties
  3. Custom duty
  4. Borrowings

Answer: Custom duty

12) Which of the following is not canons of taxation?

  1. Canon of equity
  2. Canon of certainty
  3. Canon of benefit
  4. Canon of elasticity

Answer: Canon of benefit

13) Under monopoly the incidence of lumpsome tax is

  1. on the sellers
  2. on the buyers
  3. partially on the sellers
  4. partially on the buyers

Answer: on the sellers

14) Incidence of tax refers to which of the following?

  1. Final money burden of a tax
  2. Initial Money burden of a tax
  3. Indirect money burden
  4. Real burden of tax

Answer: Final money burden of a tax

15) When the supply is more elastic supply the incidence of tax is-----

  1. more on the buyers
  2. more on the sellers
  3. borne fully by the buyers
  4. borne fully by sellers

Answer: more on the buyers

16) In the case of perfectly elastic supply the incidence of tax is-------

  1. entirely on the buyers
  2. shifted partially to the buyers
  3. borne fully by the sellers
  4. borne fully by buyers

Answer: entirely on the buyers

17) Steep tax-rate will reduce the willingness to-----

  1. work
  2. invest
  3. work & invest
  4. save

Answer: work & invest

18) Increse in tax will----

  1. divert the investment
  2. reduce the investment to zero
  3. increase the investment
  4. increase the saving

Answer: divert the investment

19) Tax on rich and luxury goods will------

  1. increase the investment
  2. check inflation
  3. check deflation
  4. incease savings

Answer: check inflation

20) Progressive taxation is-----

  1. increases inequality
  2. reduces inequality
  3. no impact
  4. increases equality

Answer: reduces inequality

21) A reduction in tax during depression ------

  1. decreases conumption
  2. reduces investment
  3. increases consumption
  4. increases investment

Answer: increases consumption

22) Taxation is anti-inflationary if tax is imposed on----

  1. essential items
  2. luxuries
  3. investment
  4. savings

Answer: luxuries

23) Which of the following canons of public expenditure is very difficult to implement in developing countries?

  1. Canon of elasticity
  2. Canon of sanction
  3. Canon of surplus
  4. Canon of productivity

Answer: Canon of surplus

24) Which of the following type of public expenditure is characterised by quid-pro-quo?

  1. Grant
  2. Subsidy
  3. Interest
  4. Purchase prices

Answer: Purchase prices

25) Public expenditure on education and health will have a ------effect on people's ability to work.

  1. Negative
  2. Neutral
  3. Positive
  4. Stagnating

Answer: Positive

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