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
The burden of indirect tax can be:
Which of the following is a Direct Tax?
Example of merit good is:
The "Ability to Pay" principle is related to:
Which of the following is a function of public finance?
GST is best described as:
A progressive tax system implies:
Which deficit indicates the borrowing requirement of the government?
Primary Deficit is equal to:
The Laffer Curve shows the relationship between:
Public goods are characterized by:
Fiscal Policy is formulated by:
Externalities can be:
Crowding out effect is associated with:
Market Failure occurs when:
Musgrave’s three functions of government do NOT include:
Ad valorem tax is imposed on:
Disinvestment refers to:
Budget Deficit is defined as:
Fiscal Federalism refers to:
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