Public Finance Quiz 1

It is the study of the role of the government in the economy.

• Finance

• Private Finance

• Public Finance

• Economics

According to Findlay Shirras

• “Public finance is the study of principles underlying the spending and raising of funds by public authorities”.

• “Public finance deals with the provision, custody and disbursement of resources needed for conduct of public or government function.”

• “Public finance is concerned with the income and expenditure of public authorities, and with the adjustment of the one to the other."

• Public Finance is concerned with the principles and practices of obtaining funds and spending the same for achieving the maximum social welfare and economic growth in the country.

Public finance has been held as science which deals with the income and expenditure of the government’s finance.

• True

• False

It is an important instrument of public finance makes use of the knowledge of government’s revenue and expenditure to achieve the objectives of full employment, economic development and equality, price stability, etc.

• Financial Policy

• Public Finance

• Fiscal Policy

• Government Policy

The study of public finance is factual information about the problems of government’s revenue and expenditure can be known.

• Normative Science

• Positive Science

• Positive Art

• Negative Art

The study of public finance presents norms or standards of the government’s financial operations.

• Normative Science

• Positive Science

• Positive Art

• Negative Art

Public finance only includes the income and expenditure of the government.

• True

• False

It studies the principles of taxation, methods of raising revenue, classification of revenue, deficit financing etc.

• Financial Administration

• Public Expenditure

• Public Revenue

• Public Debt

It also studies principles that the government should keep in view while allocating resources to various sectors and effects of such expenditure.

• Financial Administration

• Public Expenditure

• Public Revenue

• Public Debt

In modern world, it is not possible for the government to meet all its expenditure through tax and non-tax revenue. Hence public revenue falls short of public expenditure.

• Financial Administration

• Public Expenditure

• Public Revenue

• Public Debt