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.
Key Terms
Comparison Tables
All 20 Questions
121
Which of the following is a function of public finance?
MCQ122
Public goods are characterized by:
MCQ123
A progressive tax system implies:
MCQ124
The burden of indirect tax can be:
MCQ125
GST is best described as:
MCQ126
Fiscal Policy is formulated by:
MCQ127
Which deficit indicates the borrowing requirement of the government?
MCQ128
Primary Deficit is equal to:
MCQ129
Crowding out effect is associated with:
MCQ130
Which of the following is a Direct Tax?
MCQ131
The Laffer Curve shows the relationship between:
MCQ132
Market Failure occurs when:
MCQ133
Externalities can be:
MCQ134
The "Ability to Pay" principle is related to:
MCQ135
Disinvestment refers to:
MCQ136
Musgrave’s three functions of government do NOT include:
MCQ137
Example of merit good is:
MCQ138
Fiscal Federalism refers to:
MCQ139
Budget Deficit is defined as:
MCQ140
Ad valorem tax is imposed on:
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