Economics MCQs 17

An example of indirect tax is:
(a) Corporation tax
(b) Income tax
(c) Rates
(d) Tobacco tax-✔️

Which of the following is true statement?
(a) Income tax is a progressive tax
(b) Excise duty is an indirect tax
(c) Wealth tax is a direct tax
(d) All of the above-✔️

A budget is best described as:
(a) A list of expenditure made during the previous year
(b) An estimate of expected income and a plan for expenditure-✔️
(c) A means of raising money for necessary expenditure
(d) A plan for purchasing the best quality goods at the lowest prices

A budget of deficit is one:
(a) Where pubhc spending is less than the amount of revenue
(b) Where pubhc spending is greater than the amount of revenue-✔️
(c) Where pubhc spending is equal to the amount of revenue
(d) Where the budget leaves most tax payers with less disposable income

Which of the following measures would the government take to finance its borrowing requirements?
(a) Sell government securities-✔️
(b) Sell bills of exchange
(c) Sell ordinary shares
(d) Buy treasury bills

Which of the following is false statement?
(a) Federal government receives land revenue
(b) Motor vehicles tax is received by Federal Government
(c) Court fees are received by Federal Government
(d) All of the above-✔️

In a fully planned economy who decided what would be produced:
(a) Private entrepreneurs only
(b) Government only-✔️
(c) Consumers only
(d) The government in public enterprise and private entrepreneurs in private enterprises

Which of the following is/are characteristics of mixed economics?
(a) Subsidies for some industries
(b) The operation of the market economy in parts of the economy
(c) Government control of some industries
(d) All the above-✔️

Which of the following is/are true for a capitalist society?
(a) People have the right to own private property
(b) There is freedom of enterprise
(c) Freedom of choice for the consumers
(d) All of the above-✔️

Which one of the following arguments can be used in favour of the market economy?
(a) It guarantees full employment of labour-✔️
(b) It leads to equality of wealth
(c) It allows the government to plan investment in each industry
(d) All of the above