2 D 40201
7. Atax paid by a person on whom it is imposed is :
(a) Direct tax. (b). Indirect tax.
(c) Progressive tax. (d) None of these.
8. Canon of equity was given by :
(a) Adam smith. | (0) Musgrave.
(൦) Pigou. (6) Wagner.
9. Tax rate is mildly progressive up to a certain limit is called :
(a) Degressive Taxes. (b) Progressive taxes.
(c) Proportional tax. (d) None of these.
10. Important policy decisions with regard to public debt.
(a) Redemption of public debt. (b) Repudiation.
(c) Public debt management. (d) None of these.
11. Tax levied on income of corporations.
(a) Income tax. (b) Corporate income tax.
(c) Capital gains tax. (d) None of these.
12. A tax which is levied on net wealth of an individual.
(a) Capital gains tax. (b) wealth tax.
(c) Expenditure tax. (d) Property tax.
(12 x % = 6 marks)
Part B (Very Short Answer Questions)

Answer any ten questions.
_Each question carries 2 marks.

13. Explain single point tax and multipoint tax.
14. What is tax avoidance ?

15. Explain ‏لصف وم‎ and proportional taxation.
16. What is public finance ? |

17. What is public expenditure ?

18. What are the Adam smith canons of taxation ?