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‎C 60215 ಭ್‌ 3

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‎SIXTH SEMESTER B.A. DEGREE EXAMINATION, MARCH 2019‏
‎(CUCBCSS)‏
‎Economics‏
‎ECO 6B 13—PUBLIC FINANCE‏
‎Time : Three Hours Maximum : 80 Marks‏
‎Section A‏

‎Answer all twelve questions.
Each question carries % mark.

‎1. Which of the following refers to the use of taxes and public expenditures to help dampen the
swings associated with the business cycle ?

‎(a) Monetary policy. (b) Balanced budget.
(c) Fiscal policy. (d) None of these.
2. Which of the following states that those who are essentially equal should be taxed equally ?
(a) Ability-to-pay principle. (b) Horizontal equity principle.
(c) Vertical equity principle. (d) Benefit principle.

‎3. The marginal tax rate is :
(೩) The extra tax that is paid per dollar of additional income.
(b) Total taxes divided by total income.
(c) Total income divided by total taxes.
(d) None of the above.

‎4, Ram makes Rs. 30,000 per year and pays Rs. 6,000 in income taxes. Raj makes Rs. 40,000 and
pays Rs. 10,000 in income taxes. This is an example of :

‎(a) A Progressive Tax. (b) A Proportional Tax.
(c) A Regressive Tax. (d) A Degressive Tax.
5. Interest payments, subsidies and pensions in Budget are part of
(a) Plan Expenditure. (b) Non-plan Expenditure.
(c) Capital Expenditure. (d) State Government Expenditure.