Public Economics

JKPSC Assistant Professor (Economics) · Economics · 50 practice questions with answers and explanations: 5 Easy, 45 Medium, 0 Hard.

Sample questions

Sample Easy question 1

The Finance Commission is appointed under Article:

  1. 110
  2. 280
  3. 324
  4. 360
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Answer: B. It recommends the sharing of tax revenue.

Sample Easy question 2

VAT is a tax levied on:

  1. Income
  2. Value addition at each stage of production
  3. Property
  4. Wealth
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Answer: B. It has been subsumed into GST in India.

Sample Easy question 3

The Goods and Services Tax Council is chaired by the:

  1. RBI Governor
  2. Union Finance Minister
  3. President
  4. Prime Minister
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Answer: B. It is a constitutional body under Article 279A.

Sample Medium question 4

The decentralisation theorem was put forward by:

  1. Tiebout
  2. Buchanan
  3. Wallace Oates
  4. Musgrave
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Answer: C. Local provision is more efficient where tastes differ.

Sample Medium question 5

The Tiebout hypothesis states that people:

  1. Do not move
  2. Vote with their feet by choosing communities
  3. Pay no tax
  4. Prefer centralisation
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Answer: B. It suggests efficiency in local public goods.

Sample Medium question 6

A merit good is one that:

  1. Is a luxury
  2. Is harmful
  3. Is a public good
  4. The government encourages because it is under-consumed
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Answer: D. Education is an example.

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