MCQs of Fiscal Policy of Pakistan are essential for all the candidates of Inspector Inland Revenue. A student must know ABC of fiscal policy. Apart from this, if a students who skip it and qualifies the test somehow, then the examiner can ask him while conducting interview. Therefore, it is necessary for every aspirant to clear the concepts of fiscal policy of Pakistan.
If you would like to practice the Multiple Choice Questions of Fiscal Policy of Pakistan, then we have written some important MCQs of Fiscal Policy of Pakistan in this post. Once you go through these MCQs of Fiscal Policy of Pakistan, then you may also practice in quiz form.
You can read Fiscal Policy in the Following Way:
- Basics of Fiscal Policy of Pakistan
- Tools of Fiscal Policy
- Types of Fiscal Policy
- Objectives of FP
- Tax and its types
Fiscal Policy of Pakistan MCQs
1. Fiscal policy of Pakistan deals with _____________?
a. Taxes
b. Expenditure
c. Both a and b
d. NOT
2. Taxes and Expenditure are the main element of the ___________?
a. Revenue Policy
b. Fiscal Policy
c. Economic Survey Policy
d. NOT
3. Which of the following is/are the tools of Fiscal Policy?
a. Taxation
b. Government spending
c. Both a and b
d. NOT
4. There are ______ types of Fiscal Policy?
a. 1
b. 2
c. 3
d. NOT
5. Name the types of fiscal policy_____________?
a. Neutral Policy
b. Expansionary Policy
c. Contractionary Policy
d. AOT
You can also check the mcqs of Functions of FBR
6. __________ Fiscal policy is implemented for the sake to boosts the economy?
a. Expansionary fiscal policy
b. Contractionary fiscal policy
c. Neutral fiscal policy
d. NOT
7. If the government lowers the taxes and enhance spending, then it is following __________ fiscal policy?
a. Contractionary FP
b. Expansionary FP
c. Neutral FP
d. NOT
8. Which type of fiscal policy is implemented during recession?
a. Neutral FP
b. Contractionary FP
c. Expansionary FP
d. AOT
9. ___________ Policy is undertaken when an economy is in equilibrium?
a. Expansionary FP
b. Neutral FP
c. Contractionary FP
d. NOT
10. Which of the following type of FP the government spending is fully funded by tax revenue?
a. Expansionary FP
b. Contractionary FP
c. Neutral FP
d. NOT
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
21. Which of the following is/are the types of tax?
a. Direct tax
b. Indirect tax
c. Proportional tax
d. Progressive tax
e. Regressive tax
f. Value Added Tax
g. AOT
22. When government launches its budget?
a. Quarterly
b. Biannually
c. Annually
d. NOT
23. __________ is the tax which is levied on the income or profit of that person who pays himself?
a. Indirect tax
b. Direct tax
c. Both a and b
d. NOT
24. Income tax, wealth tax corporate tax are the examples of _________?
a. Direct tax
b. Indirect tax
c. Both a and b
d. NOT
25. _______ the kind of tax where the incidence and impact of taxation does not fall on the same person or entity?
a. Indirect tax
b. Direct tax
c. Income Tax
d. NOT
26. Sales tax, custom duty, and excise duty are ________ kind of taxes?
a. Direct
b. Indirect
c. Both a and b
d. NOT
27. ________ is the tax which is increased with the increase in income?
a. Regressive tax
b. Progressive tax
c. Proportional tax
d. NOT
28. ______ tax is levied with the same percentage for all people?
a. Progressive tax
b. Regressive tax
c. Proportional tax
d. NOT
29. ________ tax brings equality in distribution of incomes and enhances government revenue?
a. Progressive tax
b. Regressive tax
c. Both a and b
d. NOT
30. _______ Tax is also known as Flat tax
a. Progressive tax
b. Value added tax
c. Proportional tax
d. Both a and c
31. __________ Tax is also called as Marginal tax?
a. Regressive tax
b. Proportional tax
c. Progressive tax
d. Both a and b
32. ____ type of tax which is levied with larger percentage on the low income people?
a. Progressive
b. Regressive
c. Proportional
d. AOT
33. Sales tax is the example of ____________?
a. Proportional tax
b. Indirect tax
c. Progressive tax
d. Both a and b
34. What is the meaning of deficit financing?
a. Borrowing loan from public
b. Borrowing loan from foreign
c. Printing new currency
d. NOT
35. There are ____ main theories of taxation?
a. 2
b. 3
c. 4
d. NOT
36. Motor token tax is ________?
a. Federal
b. Provincial
c. Both a and b
d. NOT
37. Distribution of resources among provinces are done through?
a. National community fare
b. National finance commission
c. National final consumption
d. AOT
38. ________ are the principles of taxation?
a. Certainty
b. Equality
c. Secrecy
d. Both a and b
39. The main source of income of the government is _______?
a. Public debt
b. Foreign debt
c. Printing new currency
d. Taxes
40. ______ the type of tax which is levied on commodities?
a. Direct tax
b. Indirect
c. Progressive tax
d. NOT
41. Under Fiscal Policy concepts, FY stands for________?
a. Fiscal Year
b. Financial Year
c. Foreign Yield
d. NOT
42. Who monitors/supervises fiscal policy?
a. Government
b. Financial Institution
c. Prime Minister
d. NOT
43. ___________ the objective of fiscal policy?
a. Economic and price stability
b. Full employment and allocation of optimum resources
c. Encourage investment and growth
d. AOT
44. Pakistan has _________ GDP Growth rate?
a. 5%
b. 2.2
c. 3.9
d. 2.9
e. NOT
45. What is the total revenue target of FBR for this fiscal year?
a. 5.2 Trillion
b. 5.6 Trillion
c. 5.8 Trillion
d. 6 Trillion
46. IMF has given _____ revenue target for this year?
a. 4.8 Trillion
b. 5.6 Trillion
c. 6 Trillion
d. NOT
47. What was the FBR revenue target in 2020 to 2021?
a. 4.4 Trillion
b. 5.6 Trillion
c. 4.7 Trillion
d. 4.9 Trillion
48. How much present of Annual Budget we need to pay interest for debt we have taken?
a. 30%
b. 41%
c. 39%
d. AOT
49. Pakistan need to pay _________ billion interest for the debt it has taken?
a. 3059
b. 7523
c. 3708
d. NOT
50. Total debt on Pakistan is _______________?
a. 37078.5 Billion
b. 47078 Billion
c. 49707 Billion
d. NOT
51. What is the sales tax rate implemented for the locally manufactured cars?
a. 17%
b. 15%
c. 12.5%
d. 19%
52. What is the expected growth of GDP of Pakistan?
a. 4.2%
b. 3.8%
c. 4.8%
d. NOT
53. Current GDP of Pakistan is _________?
a. 47709
b. 44708
c. 42789
d. 40447