Public Finance
20 Practice MCQs available for CA Foundation
Paper
Paper 4: Business Economics
Exam Weightage
10%
Key Topics
Fiscal Policy, Budget, Market Failure
This chapter deals with government finances — how the government earns (taxation) and spends (expenditure) money. Key topics include Fiscal Policy, types of taxes (Direct and Indirect), the Union Budget, Public Debt, and the concept of Market Failure and how government intervention corrects it.
Exam Strategy Tip
Focus on the difference between Revenue and Capital items in the budget. Understand Fiscal Deficit and its implications. Tax-related MCQs are commonly asked.
All 20 Questions
Which of the following is a function of public finance?
Public goods are characterized by:
A progressive tax system implies:
The burden of indirect tax can be:
GST is best described as:
Fiscal Policy is formulated by:
Which deficit indicates the borrowing requirement of the government?
Primary Deficit is equal to:
Crowding out effect is associated with:
Which of the following is a Direct Tax?
The Laffer Curve shows the relationship between:
Market Failure occurs when:
Externalities can be:
The "Ability to Pay" principle is related to:
Disinvestment refers to:
Musgrave’s three functions of government do NOT include:
Example of merit good is:
Fiscal Federalism refers to:
Budget Deficit is defined as:
Ad valorem tax is imposed on:
Ready to Master Public Finance?
Practice all 20 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free