Public Finance

The main feature of regressive taxation is that its rate A is higher when income is higher B is equal tax for all categories of people C remains constant when income increases D reduces when income increses Which of the following is an item of government recurrent expenditure? A Road construction B Port facilities C Wages and Salaries D Telecommunication projects Deficit budget means that government’s A Government expenditure is equal to its revenue B Planned expenditure is more than the estimated income C Planned income and expenditure target cannot be achieved D Expenditure is less than estimated revenue Abstention from consumption which enables capital to be produced is called A Savings B Production C Accumulation D Opportunity cost Inflation can best be checked by A allowing supply to remain constant B decreasing supply and incresing wages C increasing supply and holding wages constant D decreasing supply and wages One disadvantage of inflation is that? A fixed income earners gain B fixed income eaners lose C businessmen lose D standard of living rises if there is an increase in wages and salaries without corresponding increase in the supply of goods and services, the situation will lead to A a reduction in aggregate demand B inflation C depression D budget surplus public expenditure can be financed from all the following sources except the A borrowing B grant-in-aid C royalties and rent D mobilization fees which of the following is a direct tax A import duty B export duty C capital gain tax D sales tax Tax evasion means A postponing paymeny of tax B tax payment according to ability to pay C making false declaration of taxable income D paying little amount of money as tax An ad volarem tax refers to a tax A imposed on exports B on goods manufactured in the country C based on the value of the commodity D levied on income Balance of payment deficit can be corrected by A purchasing foreign assets B acumulating foreign reserves C export promotion measures D import promotion measures