This document contains a 20 question multiple choice quiz on concepts in public finance and economics. The questions cover topics such as the definitions and scopes of public finance and economics, sources of public debt, effects of public expenditure, components of public finance, characteristics of business cycles, types of public facilities, modern terms for public finance, influences of fiscal policy, and differences between public and private finance. The correct answers to each multiple choice question are also provided.

1. Note: All Questions are compulsory.
Section A (20 X 0.5 Marks = 10 Marks)
Q1 Public Finance and Public economics are:
a) Identical terms with same condition
b) Different terms with different connotation
c) Similar terms with dissimilar scope
d) None of the above
Ans: Similar terms with dissimilar scope
Q2 Traditional public finance has
a) Narrow scope
b) Wider scope
c) None of the above
d) Both of them
Ans: Narrow scope
Q3 arises when the governments borrow when their expenditure is more than
revenue.
a) Public debts
b) Public revenue
c) Public expenses
d) None of these
Ans: Public debts
Q4 Effects of Public expenditure are
a) Consumption
b) Allocation of Resources
c) Production
d) All of the above
Ans: All of the above
Q5 Public finance includes

2. a) public revenue
b) public expenditure
c) public debt
d) All of the above
Ans: All of the above
Q6 Public finance is dull, unimaginative, extremely limited and almost an irrelevant discipline
is said by
a) J. M. Buchnan
b) Amresh Bagchi
c) Harold M.Grooves
d) H.Dalton
Ans: J. M. Buchnan
Q7 is the study of the role of the government in the economy.
a) Public revenue
b) Public finance
c) Public expenditure
d) None of the above
Ans: Public finance
Q8 Business activity in an economy is usually characterized by fluctuations of a
nature.
a) Regular
b) Cyclical
c) Irregular
d) Basic
Ans: Cyclical
Q9 Public expenditure enhances the quality of life of people by providing
a) recreational
b) cultural
c) educational and public health facilities
d) All of the above

3. Ans: All of the above
Q10 Modern public finance is known as finance.
Ans : Contributory
Q11 Public Finance is sometimes referred to as .
Ans: Public economics
Q12 Fiscal policy along with monetary policy is now the important instrument of .
Ans: Macroeconomic policy
Q13 Both the subject matter and the scope of public finance today stand .
Ans: extended
Q14 Now it is being increasingly recognized that government expenditure and revenue
programme exert influence upon the .
Ans: Level of income
Q15 Important difference between public and private finance is with regard to nature of
.
Ans: Impact
Q16 The income of the state is referred to as .
Ans: Public Revenue
Q17 Government is also an economic unit like a .
Ans: business
Q18 The scope of public economics is wider than that of public finance. True/False
Q19 Fiscal policy was not the subject matter of traditional public finance. True/False
Q20 Fiscal policy along with monetary policy is now the most important instrument of
macroeconomic policy. True/False