Choose the correct option

1. Optional functions of Government :
a) Protection from external attack
b) Provision of education and health services
c) Provision of social security measures
d) Collection of tax
1) b and c
2) a, b and c
3) b, c and d
4) All of the above
Ans:- 1) b and c

2. Obligatory functions of the Government:
a) Provision of employment
b) Maintaining internal law and order
c) Welfare measures
d) Exporting goods and services
1) c and d
2) a and b
3) only b
4) a, c and d
Ans:- 3) only b

3. “Definition – Public finance is one of those subjects which are on the borderline between economics and politics.” ……… given by
a) Adam Smith
b) Alfred Marshall
c) Prof. Hugh Dalton
d) Prof. Findlay Shirras
Options :
1) only a
2) only b
3) only c
4) only d
Ans:- 3) only c

4. Non-tax sources of revenue :
a) Direct and Indirect Tax
b) Direct Tax and Fees
c) Fees
d) Special Levy
1) b and c
2) a and c
3) a, b, c and d
4) c and d
Ans:- 4) c and d

5. Trends shown by Public expenditure of any Government shows the following trend.
a) Constant
b) Increasing
c) Decreasing
d) Fluctuating
1) only a
2) only b
3) only c
4) only d
Ans:- 2) only b

6) Identify the right group of pairs from the given options.

Group A

Group B

i) Direct tax

a) Non-tax revenue

ii) Indirect tax

b) Inflation

iii) Fees and Fines

c) GST

iv) Surplus budget

d) Personal income tax

1) i-d ii-c iii-b iv-a
2) i-c ii-d iii-a iv-b
3) i-d ii-c iii-a iv-b
4) i-a ii-b iii-c iv-d
Ans:- 3) i-d ii-c iii-a iv-b