11. When government spends more money and collects less taxes?
a. Follows Expansionary FP
b. Follows Neutral FP
c. Follows Contractionary FP
d. AOT
12. The government implement ________ policy to slow down economic growth in case of high inflation.
a. Contractionary FP
b. Expansionary FB
c. Neutral FP
d. AOT
13. In which FP type government raises taxes and reduces government spendings?
a. Neutral FP
b. Contractionary FP
c. Expansionary FB
d. NOT
14. Under which type of FP government can pay debts?
a. Expansionary FP
b. Neutral FP
c. Contractionary FP
d. NOT
15. Which of the following can measure fiscal deficit in percentage?
a. Country’s reserves
b. Import and export
c. Gross domestic product
d. NOT
You may also check mcqs of sales tax act, 1990
16. Who levies taxes in Pakistan?
a. Board
b. Finance Minister
c. National Assembly
d. President
17. Fiscal deficit tells about the _________ between revenue and expenditure?
a. Gap
b. Statement
c. Both a and b
d. NOT
18. Before _________ fiscal policy is brought?
a. Provincial Assembly
b. Board
c. National Assembly
d. President
19. _________ explains fiscal policy statement?
a. Total public debt and per capita debt
b. Total expenditure, total fiscal deficit,
c. Total net revenue
d. Fiscal deficit other than foreign grans
e. AOT
20. Why taxes are levied?
a. To collect funds
b. To provide benefit to the people
c. Both a and b
d. NOT