McqMate
| 1. |
Which of the following is an example of Transfer Income? |
| A. | bonus |
| B. | unemployment allowance |
| C. | compensation from the employer |
| D. | all of these |
| Answer» D. all of these | |
| 2. |
Which of the following is an example of an intermediate good? |
| A. | car sold by a dealer of second hand cars |
| B. | steel and cement used to construct a flyover |
| C. | fertilizers purchased by a farmer |
| D. | all of these |
| Answer» D. all of these | |
| 3. |
Out of the following, which aggregate represents 'National Income'? |
| A. | nnp mp |
| B. | gnp fc |
| C. | nnp fc |
| D. | gnp mp |
| Answer» C. nnp fc | |
| 4. |
if facor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement? |
| A. | national income = domestic income |
| B. | ndp fc + depreciation = gnp fc |
| C. | ndp fc + depreciation = gnp mp |
| D. | all are valid |
| Answer» D. all are valid | |
| 5. |
Cororate tax is not a part of : |
| A. | personal income |
| B. | naional income |
| C. | domestic income |
| D. | private income |
| Answer» A. personal income | |
| 6. |
If economic subsidies are added to and Indirect taxes are substracted from the national income at market prices, then it will be equal to : |
| A. | domestic income |
| B. | national income |
| C. | gnp at market price |
| D. | gdp at factor cost |
| Answer» B. national income | |
| 7. |
In which type of economy, domestic income is equal to national income? |
| A. | open economy |
| B. | closed economy |
| C. | both a and b |
| D. | neither a nor b |
| Answer» B. closed economy | |
| 8. |
Domestic factor income is another name for: |
| A. | ndp fc |
| B. | nnp mp |
| C. | gdp fc |
| D. | nnp fc |
| Answer» A. ndp fc | |
| 9. |
Which of the following ia a part of National Income? |
| A. | old age pension |
| B. | unemployment allowance |
| C. | profit |
| D. | scholarship |
| Answer» C. profit | |
| 10. |
NDP at FC is less than National Income when: |
| A. | net factor income from abroad is positive |
| B. | net factor income from abroad is negative |
| C. | net factor income from abroad is zero |
| D. | net exports are positive |
| Answer» A. net factor income from abroad is positive | |
| 11. |
National income is equal to: |
| A. | domestic product plus factor income earned from abroad |
| B. | domestic product plus net factor income earned from abroad |
| C. | domestic product mins factor income earned from abroad |
| D. | domestic product plus export minus imports |
| Answer» B. domestic product plus net factor income earned from abroad | |
| 12. |
is the net amount available to households for consuption and saving |
| A. | national income |
| B. | personal income |
| C. | personal disposable income |
| D. | government income |
| Answer» C. personal disposable income | |
| 13. |
GNP exceeds NNP by: |
| A. | amount of total taxes |
| B. | government expenditure |
| C. | transfer payments |
| D. | difference between gross investment and net investment |
| Answer» D. difference between gross investment and net investment | |
| 14. |
GDP MP = Rs.1000 and subsidies = Rs.50, then GDP FC will be : |
| A. | 1050 |
| B. | 950 |
| C. | 1000 |
| D. | 900 |
| Answer» A. 1050 | |
| 15. |
"Income method" is also known as: |
| A. | distributive share method |
| B. | income disposal method |
| C. | industrial origin method |
| D. | none of these |
| Answer» A. distributive share method | |
| 16. |
Which one is included in National Income? |
| A. | winning from lottery |
| B. | milk purchase by a dairy shop |
| C. | national debt interest |
| D. | none of these. |
| Answer» D. none of these. | |
| 17. |
'Distributed Profits' is also known as: |
| A. | corporate tax |
| B. | dividend |
| C. | retained earnings |
| D. | none of these |
| Answer» B. dividend | |
| 18. |
If a farmer sells Wheat to miller for RS.500 and miller sells flour to baker for Rs.700 and baker sells bread to consumer for Rs.1000, then total value added by Miller and baker is: |
| A. | 500 |
| B. | 300 |
| C. | 1700 |
| D. | 1200 |
| Answer» A. 500 | |
| 19. |
Which of the following is included in domestic income? |
| A. | factor income from abroad |
| B. | windfall gains |
| C. | pension on retirement |
| D. | capial gains |
| Answer» C. pension on retirement | |
| 20. |
Expenditure method focuses on measurement of National income at: |
| A. | phases of production of goods and services |
| B. | phase of income distribution |
| C. | phase of income disposition |
| D. | all of these |
| Answer» C. phase of income disposition | |
| 21. |
Which of the following is not an economic activity and hence not included while estimating national income in india? |
| A. | medical services rendered by a dispensary |
| B. | a housewife doing household work |
| C. | a lawyer doing his practiced |
| D. | a maid working full time with a family |
| Answer» B. a housewife doing household work | |
| 22. |
National product at current prices is higher than national product at constant prices during a period of : |
| A. | rising prices |
| B. | falling prices |
| C. | constant prices |
| D. | both a and b |
| Answer» A. rising prices | |
| 23. |
Net Factor Income from Abroad is taken into account when National Income is calculated by: |
| A. | value added method |
| B. | income method |
| C. | expenditure method |
| D. | any of the three methods |
| Answer» D. any of the three methods | |
| 24. |
Broker's commission on sale and purchase of second hand goods is included in national income because: |
| A. | it is a part of compensation of employees |
| B. | it is a part of gross domestic capital formation |
| C. | it is an income earned for rendering productive services |
| D. | none of these |
| Answer» C. it is an income earned for rendering productive services | |
| 25. |
The first National Income calculation on a scientific basis in India is in the year |
| A. | 1947-48 |
| B. | 1951-52 |
| C. | 1931-32 |
| D. | 1990-91 |
| Answer» C. 1931-32 | |
| 26. |
Two sector economy consists of: |
| A. | households, firms |
| B. | households, government |
| C. | firms, foreign sector |
| D. | firms, government. |
| Answer» A. households, firms | |
| 27. |
Real flow is also known as: |
| A. | nominal flow |
| B. | money flow |
| C. | physical flow |
| D. | both a and b |
| Answer» C. physical flow | |
| 28. |
Which of the following is the consumption sector? |
| A. | household |
| B. | firm |
| C. | government |
| D. | foreign |
| Answer» A. household | |
| 29. |
Real flow refers to the flow of factor services from ------ to ----- |
| A. | firms to households |
| B. | households to firms |
| C. | firms to government |
| D. | households to government |
| Answer» A. firms to households | |
| 30. |
Which of the following constitute the reason for difference between Market prices and factor cost? |
| A. | indirect taxes |
| B. | subsidies |
| C. | both a and b |
| D. | neither a nor b |
| Answer» C. both a and b | |
| 31. |
If factor cost is greater than Market price, then it means that: |
| A. | indirect taxes > subsidies |
| B. | indirect taxes = subsidies |
| C. | indirect taxes < subsidies |
| D. | indirect taxes = and > subsidies |
| Answer» C. indirect taxes < subsidies | |
| 32. |
Final goods refer to those goods which are used either for ............. or for .......... |
| A. | consumption, investment |
| B. | consumption, resale |
| C. | resale, investment |
| D. | resale,further production. |
| Answer» A. consumption, investment | |
| 33. |
Net Factor Income from Abroad is: |
| A. | export minus imorts |
| B. | visible exports minus visible imports |
| C. | factor income received from abroad minus factor income paid abroad |
| D. | factor income received from abroad |
| Answer» D. factor income received from abroad | |
| 34. |
Depreciation means: |
| A. | destruction of a plant in a fire accident |
| B. | loss of fixed assets over time due to wear and tear |
| C. | loss of fixed assets in an earthquake |
| D. | closure of the plant due to lockout |
| Answer» B. loss of fixed assets over time due to wear and tear | |
| 35. |
Non-exclusion principle is related to: |
| A. | private goods |
| B. | public goods |
| C. | merit goods |
| D. | mixed goods 20. |
| Answer» B. public goods | |
| 36. |
Education is an example of: |
| A. | public good |
| B. | merit good |
| C. | social good |
| D. | club good |
| Answer» B. merit good | |
| 37. |
Public Goods are: |
| A. | excludable |
| B. | non – excludable |
| C. | marketable |
| D. | all of these |
| Answer» B. non – excludable | |
| 38. |
Who is the father of Public Finance: |
| A. | dalton |
| B. | pigou |
| C. | smith |
| D. | musgrave |
| Answer» A. dalton | |
| 39. |
Incidence of tax means: |
| A. | direct money burden |
| B. | indirect money burden |
| C. | actual tax burden |
| D. | none of these |
| Answer» B. indirect money burden | |
| 40. |
Which is the tax shifting |
| A. | to bear the tax burden himself |
| B. | to shift the tax burden on others |
| C. | to bear some part of the tax himself and shift the rest on others |
| D. | none of these |
| Answer» B. to shift the tax burden on others | |
| 41. |
The equity principle of taxation was propounded by: |
| A. | adam smith |
| B. | dalton |
| C. | j.b. say |
| D. | marshall |
| Answer» A. adam smith | |
| 42. |
BOP includes |
| A. | current account |
| B. | capital account |
| C. | official reserve account |
| D. | all the above |
| Answer» D. all the above | |
| 43. |
International trade refers to trade between |
| A. | two regions of a country |
| B. | two countries |
| C. | two commodities produced in different countries |
| D. | non of the above |
| Answer» B. two countries | |
| 44. |
Under a fixed exchange rate system, ____________________are official changes in the value of a country's currency relative to other currencies. |
| A. | devaluation |
| B. | depreciation and appreciation |
| C. | revaluation |
| D. | both a and c |
| Answer» A. devaluation | |
| 45. |
__________ is the deliberate downward adjustment in the official exchange rate, reduces the currency's value. |
| A. | devaluation |
| B. | depreciation |
| C. | revaluation |
| D. | appreciation. |
| Answer» A. devaluation | |
| 46. |
A _______________is an upward adjustment in the official exchange rate, which increases the value of the currency. |
| A. | devaluation |
| B. | depreciation |
| C. | revaluation |
| D. | appreciation |
| Answer» C. revaluation | |
| 47. |
Which among following is NOT an implication of devaluation? |
| A. | devaluation makes the country's exports relatively less expensive for foreigners. |
| B. | devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. |
| C. | devaluation help to increase the country's exports |
| D. | may therefore help to reduce the current account surplus. |
| Answer» A. devaluation makes the country's exports relatively less expensive for foreigners. | |
| 48. |
Which among following is an implication of revaluation? |
| A. | revaluation makes the country's exports relatively more expensive for foreigners. |
| B. | revaluation makes foreign products relatively more expensive for domestic consumers, thus encouraging imports. |
| C. | revaluation help to reduce the country's exports to reduce the current account surplus. |
| D. | all the above |
| Answer» D. all the above | |
| 49. |
Devaluation leads to |
| A. | increasing the price of imports and stimulating greater demand for domestic products. |
| B. | domestic inflation. |
| C. | rise in domestic interest rates. |
| D. | all the above |
| Answer» D. all the above | |
| 50. |
PDS Stands for: |
| A. | public distribution system |
| B. | public division system |
| C. | price distribution system |
| D. | all of these |
| Answer» A. public distribution system | |
| 51. |
Agricultural Credit is given by. |
| A. | co-operatives |
| B. | rrbs |
| C. | nabard |
| D. | all of the above |
| Answer» D. all of the above | |
| 52. |
India’s Green revolution was most successful in …………Production: |
| A. | wheat |
| B. | rice |
| C. | maize |
| D. | cotton |
| Answer» A. wheat | |
| 53. |
Regional Rural Bank were started in ……………….. |
| A. | 1969 |
| B. | 1972 |
| C. | 1975 |
| D. | 1991 |
| Answer» C. 1975 | |
| 54. |
The worst form of land tenurs system was……………………. |
| A. | zamindary |
| B. | riotwary |
| C. | mahalwari |
| D. | malguzari |
| Answer» A. zamindary | |
| 55. |
When the first industrial policy was introduced ? |
| A. | 1951. |
| B. | 1991. |
| C. | 1948. |
| D. | 1956 |
| Answer» C. 1948. | |
| 56. |
Import quota is : |
| A. | tariff |
| B. | non-tariff trade barrier |
| C. | concession |
| D. | international obligation |
| Answer» B. non-tariff trade barrier | |
| 57. |
Balance of payments must always balance because: |
| A. | trade deficit is cancelled by invisible credits |
| B. | import always equals exports |
| C. | of an accounting connection |
| D. | what a country gets, it must either pay or save |
| Answer» C. of an accounting connection | |
| 58. |
Trade Policy measures for correction of balance of payments disequilibrium include of export promotion: |
| A. | export promotion |
| B. | import control |
| C. | both a & b |
| D. | import substitution |
| Answer» C. both a & b | |
| 59. |
In calculating India’s balance of payments position, we must: |
| A. | omit invisible items |
| B. | omit exports and imports of gold |
| C. | include expenditure by foreign tourists as imports |
| D. | include long term loans abroad as debit |
| Answer» B. omit exports and imports of gold | |
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