Start learning →

CA Foundation Public Finance — practice questions

Explore 78 free Public Finance questions in CA Foundation Business Economics. Open each question or exercise to read its content, reference answers and available explanation.

Practise Public Finance with Quill →

Public Finance questions and exercises with answers

Showing questions 1–30 of 78.

What term describes private markets failing to allocate goods or services efficiently?Read the answer and worked solution →Inefficiencies in public provision by a government are termed what?Read the answer and worked solution →Which of these can cause market failure?Read the answer and worked solution →Public sector programmes should be designed to maximise what?Read the answer and worked solution →What is a government deficit?Read the answer and worked solution →The accumulation of deficits over time gives which total?Read the answer and worked solution →Government borrowing mainly spreads tax burdens across what?Read the answer and worked solution →Which is an essential component of public financial management?Read the answer and worked solution →Government purchases of goods and services for current use are classed as what?Read the answer and worked solution →Social security payments, which buy no goods or services, are classed as what?Read the answer and worked solution →Which is a primary way of financing government expenditure?Read the answer and worked solution →Which concept studies who finally bears a tax's burden after markets adjust?Read the answer and worked solution →What is the main objective of taxation?Read the answer and worked solution →Taxation helps a welfare state reduce what, by redistributing wealth?Read the answer and worked solution →How is a tax best described?Read the answer and worked solution →A tax on the production or sale of a particular good is called what?Read the answer and worked solution →Which tax is levied on goods at the point of importation?Read the answer and worked solution →Which tax is levied on incorporated entities?Read the answer and worked solution →Which tax may be levied on a Hindu joint family in India?Read the answer and worked solution →Government debt owed to foreign lenders is called what?Read the answer and worked solution →Debt owed to lenders within the country is called what?Read the answer and worked solution →On a cash basis, government revenues are recognised at what point?Read the answer and worked solution →Net revenue from issuing currency is known as what?Read the answer and worked solution →Which pair of traits defines a pure public good?Read the answer and worked solution →A good whose use by one person does not reduce availability to others is what?Read the answer and worked solution →Which is a standard example of a pure public good?Read the answer and worked solution →Which of these is a private good?Read the answer and worked solution →Which type of good is rivalrous but non-excludable?Read the answer and worked solution →Excludable but non-rivalrous goods such as private parks are what?Read the answer and worked solution →Which problem arises when non-payers can still access a public good?Read the answer and worked solution →

Worked practice questions

What term describes private markets failing to allocate goods or services efficiently?

  1. Government failure
  2. Market failure
  3. Fiscal slippage
  4. Deficit financing
Show answer and solution

Correct answer: B. Market failure

Inefficient allocation by private markets is exactly what economists call market failure, which justifies collective provision.

Open this question →

Inefficiencies in public provision by a government are termed what?

  1. Tax avoidance
  2. Government failure
  3. Fiscal surplus
  4. Market failure
Show answer and solution

Correct answer: B. Government failure

Public provision has its own inefficiencies, which are labelled government failure to contrast with market failure.

Open this question →

Which of these can cause market failure?

  1. Cost-benefit study
  2. Currency issue
  3. Externalities
  4. Progressive tax
Show answer and solution

Correct answer: C. Externalities

Externalities are listed among the causes that stop private markets from reaching efficient outcomes.

Open this question →

How to practise

  1. Choose a Public Finance question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Business Economics topics

Price-Output Determination under Different Market FormsTheory of Consumer BehaviourSupplyTheory of ProductionProduction And CostBusiness CyclesBasic Problems of an Economy and Role of Price MechanismLaw of Demand