I. Instruction: Multiple Choices 1. The scope of public finance includes the following functions of the government's budgetary policy A) Allocation of Resources B) Distribution of Income C) Economic Stabilization D) All 2. Public finance is composed of the following constituents: A) Revenue and Expenditure B) Debt C) Financial Administration D) A and C E) All 3. Private finance is the study of the income, debt and expenditure of A) Individual and private company B) business venture C) association. 4. Both Public Finance and Private Finance are similar in the following ways: A) Use Similar Theories B) Face the Problem of Scarcity D) A and C E) All C) Require Efficient Administration 5. Government of a modern state generally undertakes the following functions: A) Security of its Nation B) Provision of Social Services C) Control of Economy D) All 6. The sources of the public or Government revenue are: A) Tax and Non-tax Revenue C) Fiscal services and others B) interest receipts, dividends and profits D) All E) A and B only 7. Which one of the following is not among the elements of taxation? A) compulsory contribution imposed by governments C) the benefit may not be proportional to tax paid 8. What are the three heads the various types of taxes can be listed under? A) Income and Expenditure C) On Commodities and Services 9. Public Debt may be raised to meet the financing of: B) Property and Capital Transactions. D) All E) None B) taxation for welfare of the community D) All E) None 2 D) All B) Productive Government Enterprise D) B and C A) Current Expenditure, C) Social Welfare and Economic Development. E) All 10. External debt and transfer of capital at international level may take the form of: A) financial aid through grants and loans B) commodity aid C) technical assistance D) All 11. Fiscal policy or budgetary policy relates to the government's decision making of A) Taxations B) Government spending C) Government borrowing and Debt Management D) All E) All except C​