Correct Answer:
C. Tax revenue divided by GDP, expressed as a percentage
It measures the tax effort of an economy.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Tax-to-GDP ratio is calculated as:
Related MCQs
The normal balance of a revenue account is:
A.
Debit
B.
Zero
C.
Depends on the auditor
D.
Credit
Correct answer is:
D. Credit
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Market price per share is Rs. 90 and EPS is Rs. 6. The price-earnings (P/E) ratio is:
A.
0.067
B.
540
C.
96
D.
15
Correct answer is:
D. 15
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An example of a direct tax is:
A.
Sales tax
B.
Customs duty
C.
Excise duty
D.
Income tax
Correct answer is:
D. Income tax
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The Fiscal Responsibility and Debt Limitation Act, 2005 of Pakistan provides a target for:
A.
The ratio of total public debt to GDP
B.
The number of public employees
C.
The exchange rate
D.
The inflation rate only
Correct answer is:
A. The ratio of total public debt to GDP
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Value for money in public audit refers to:
A.
Obtaining the best outcome from resources spent, with economy, efficiency and effectiveness
B.
Spending as little as possible regardless of outcome
C.
Spending the entire budget
D.
Maximizing revenue only
Correct answer is:
A. Obtaining the best outcome from resources spent, with economy, efficiency and effectiveness
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Relevant costs are costs that:
A.
Have already been paid
B.
Are the same under all alternatives
C.
Include all allocated overheads
D.
Are future costs and differ between alternatives
Correct answer is:
D. Are future costs and differ between alternatives
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