1. Assertion (A) : A progressive income tax is based on equimarginal sacrifice.
Reason (R) : Higher the income, lower will be the marginal utility of money for the taxpayer.

2. The Central Government has had to resort to substantian borrowing since the early 80s, mainly because

3. Which one of the following sources is not considered as a source of Government revenue?

4. Which sector has maximum share in Gross Domestic Saving in India?

5. Black money is generated in India because of

6. Zero-Based Budgeting (ZBB) lays emphasis on
1. unlimited deficit financing
2. preparing new budget right from the scratch
3. preparing the budget neglecting history of expenditure
Select the correct answer using codes given below:

7. A Finance Bill is a bill which

8. Which one among the following can not be made a progressive tax?

9. Central assistance for state and UT Plan is a part of

10. Assertion (A) : More reliance should be placed on progressive income taxes.
Reason (R) : It is in accordance with the principles of equity.

11. Taxable capacity is a function of

12. Capital gains mean

13. In India, the states get maximum income from

14. Which of the following taxes is an exclusive source of revenue for the state governments?

15. Which one of the following is the aim of functional finance?

16. Consider the following statements :
1. In the context of the classical model loan finance may be a means of transferring the burden to the future generation.
2. Foreign borrowing permits financing public programmes without placing a burden on the present generation.
3. Foreign borrowing is not burdensome to the future generations even if the funds are used unproductively. Of the above statements

17. Consider the following statements– The incidence of corporate income tax under competition depends upon
1. the elasticity of substitution between factors in the non-corporate sector industries.
2. the income elasticity of demand for the output of the corportate sector industries.
3. the elasticity of substitution in demand between the outputs of the corporate sector and the noncorporate sector industries.
4. the difference between the factor proportions in the corporate and non-corporate sectors Of these statements.

18. Exemption from the entertainment tax is granted if the entire proceeds are devoted to
1. postal savings
2. shares in new industrial undertakings
3. charitable purposes
4. redemption of debt
Select the correct answer using the codes given below

19. Match List I with List II and select the correct answer using the codes given below the lists : List I List II (a) Revenue deficit 1. Total expenditure minus revenue receipts (b) Budget deficit 2. Net increase in holding of Treasury Bills by RBI and its contribution to market borrowings of governnment (c) Monetised deficit 3. Total expenditure minus total receipts (d) Fiscal deficit 4. Revenu e ex pen ditu re minus revenue receipts Codes: (a) (b) (c) (d)

20. Assertion (A) : The imposition of a per unit tax causes the monopolist's average cost and marginal cost curves to shift up.
Reason (R) : The per unit tax is like a variable cost.

21. The incidence of a sales tax will be

22. The most expensive head under public-revenue expenditure in the Union Budgets of the last decade has been

23. Which of the following is not a direct tax?

24. Union Excise duties are a part of Central Governments

25. After allowing for state's share of taxation which of the following tax revenue brings in the largest amount of revenue to the Central Governmnet?