McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Arts in Economics (MA Economics) .
| 51. |
External debts can be raised from ........... |
| A. | individuals |
| B. | rbi |
| C. | commercial banks |
| D. | world bank |
| Answer» D. world bank | |
| 52. |
Debts that are repaid at some specific future date are known as |
| A. | redeemable debts |
| B. | irredeemable debts |
| C. | treasury bill |
| D. | none of the above |
| Answer» A. redeemable debts | |
| 53. |
External loans are raised from |
| A. | idbi |
| B. | icici |
| C. | rbi |
| D. | wto |
| Answer» D. wto | |
| 54. |
The concept of Merit goods was developed by ................ |
| A. | musgrave |
| B. | marshall |
| C. | adam smith |
| D. | zak |
| Answer» A. musgrave | |
| 55. |
Non-rival consumption is the feature of .............. |
| A. | public good |
| B. | private good |
| C. | merit good |
| D. | necessary good |
| Answer» A. public good | |
| 56. |
The theory of second best was introduced by ............... |
| A. | lipse and lancester |
| B. | allen and hicks |
| C. | samuelson and hicks |
| D. | horrod and dommor |
| Answer» A. lipse and lancester | |
| 57. |
Wagner’s Law of increasing ............ activities. |
| A. | central |
| B. | state |
| C. | local |
| D. | one of these |
| Answer» B. state | |
| 58. |
Wiseman-Peacock was studied expenditure of .............. in 1890-1955. |
| A. | ussr |
| B. | usa |
| C. | uk |
| D. | none of these |
| Answer» C. uk | |
| 59. |
Pure theory of public expenditure is based on .............. |
| A. | benefit |
| B. | loss |
| C. | profit |
| D. | none of these |
| Answer» A. benefit | |
| 60. |
Social marginal productivity criteria was developed by ........... |
| A. | malthus |
| B. | a. e. khan |
| C. | a. k. sen |
| D. | none of these |
| Answer» B. a. e. khan | |
| 61. |
Balanced budget means ................ between revenue and expenditure. |
| A. | balance |
| B. | unbalance |
| C. | unequal |
| D. | none of these |
| Answer» A. balance | |
| 62. |
................... budget concept was first introduced in USA in 1964. |
| A. | zero-base |
| B. | no zero-base |
| C. | surplus base |
| D. | none of these |
| Answer» A. zero-base | |
| 63. |
Public debt is the debt owed by ................ |
| A. | industry |
| B. | individual |
| C. | central government |
| D. | bank |
| Answer» C. central government | |
| 64. |
In a concept of budgetary deficit, ............... is always greater than the total revenue. |
| A. | public expenditure |
| B. | taxes amount |
| C. | money supply |
| D. | crr |
| Answer» A. public expenditure | |
| 65. |
The value of balanced budget multiplier is always ................ |
| A. | 0 |
| B. | 1 |
| C. | 2 |
| D. | indefinite |
| Answer» B. 1 | |
| 66. |
............ tax is in the jurisdiction of the Central government. |
| A. | land revenue |
| B. | corporation tax |
| C. | excise on alcohol |
| D. | tax on electricity consumption |
| Answer» B. corporation tax | |
| 67. |
In internal debt ................ are important. |
| A. | external loans |
| B. | market loans |
| C. | personal loans |
| D. | none of these |
| Answer» B. market loans | |
| 68. |
Public debt in Indian Economy is .................... in nature. |
| A. | increasing |
| B. | decreasing |
| C. | constant |
| D. | none of these |
| Answer» A. increasing | |
| 69. |
Fiscal Crisis was carried in ................. period. |
| A. | planning |
| B. | new economic policy |
| C. | before indpendence |
| D. | none of these |
| Answer» A. planning | |
| 70. |
Which of the following is a Revenue Receipt? |
| A. | loan from the imf |
| B. | grant received from the world bank |
| C. | borrowing from the public |
| D. | sale of the shares held by the government in hmt |
| Answer» B. grant received from the world bank | |
| 71. |
Which of the following is a Capital Receipt? |
| A. | profit tax |
| B. | railway ticket fare |
| C. | fee of the government hospital |
| D. | borrowing from the public |
| Answer» D. borrowing from the public | |
| 72. |
Which one of the following is not the form of Tax Revenue? |
| A. | income tax |
| B. | sales tax |
| C. | license fee |
| D. | excise duty |
| Answer» C. license fee | |
| 73. |
Identify the Capital Receipts |
| A. | penalty |
| B. | corporation tax |
| C. | dividends on investments made by the government |
| D. | sale of a public sector undertaking |
| Answer» D. sale of a public sector undertaking | |
| 74. |
Existence of Centre State economic inequalities is known as |
| A. | vertical imbalance |
| B. | horizontal imbalance |
| C. | parallel imbalance |
| D. | none of these |
| Answer» A. vertical imbalance | |
| 75. |
A multilevel decentralized fiscal system involving sharing of fiscal responsibilities between central, state and local governments is referred to as: |
| A. | fiscal union |
| B. | fiscal federalism |
| C. | fiscal equalisation |
| D. | fiscal generalism |
| Answer» B. fiscal federalism | |
| 76. |
The system of assigning the source of revenue to the Central as well as State Governments is generally referred to as |
| A. | public finance |
| B. | distributive finance |
| C. | unitary finance |
| D. | federal finance |
| Answer» D. federal finance | |
| 77. |
The modern state is: |
| A. | laissez–faire state |
| B. | welfare state |
| C. | aristocratic state |
| D. | police state |
| Answer» B. welfare state | |
| 78. |
Which one of the following is the most acceptable theory of taxation: |
| A. | benefit theory |
| B. | cost of service theory |
| C. | ability to pay theory |
| D. | none of these |
| Answer» C. ability to pay theory | |
| 79. |
The Indian income tax is: |
| A. | direct and proportional |
| B. | indirect and proportional |
| C. | indirect and progressive |
| D. | direct and progressive |
| Answer» D. direct and progressive | |
| 80. |
The main objective of budgeting is: |
| A. | planning |
| B. | co‐ordination |
| C. | control |
| D. | all of these |
| Answer» D. all of these | |
| 81. |
Wiseman‐Peacock hypothesis supports in a much stronger manner the possibility of: |
| A. | an upward trend in public expenditure |
| B. | a downward trend in public expenditure |
| C. | a constancy of public expenditure |
| D. | a mixed trend in public expenditure |
| Answer» A. an upward trend in public expenditure | |
| 82. |
A negative externality is |
| A. | conflict relation with a foreign country |
| B. | deficit in external trade |
| C. | hurting effect of a private action on other people |
| D. | rain outdoors. |
| Answer» C. hurting effect of a private action on other people | |
| 83. |
The “Tragedy of the Commons” is |
| A. | discovery of corruption among members of the british parliament. |
| B. | exhaustion of resources that are collectively owned. |
| C. | outrageous crime in a boston public park. |
| D. | play by arthur miller. |
| Answer» B. exhaustion of resources that are collectively owned. | |
| 84. |
Which of the following is a public good? |
| A. | house. |
| B. | traffic sign. |
| C. | both of the above. |
| D. | none of the above |
| Answer» C. both of the above. | |
| 85. |
The provision of public goods requires |
| A. | competition among firms in the market |
| B. | lobbying |
| C. | trade protection |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 86. |
Public goods are those for which |
| A. | external costs exist. |
| B. | individuals who do not pay cannot be excluded from consuming. |
| C. | individuals who do not pay can be excluded from consuming. |
| D. | no external costs exist. |
| Answer» B. individuals who do not pay cannot be excluded from consuming. | |
| 87. |
When consumption of a good is non-rival and non-excludable, the good is a |
| A. | public good. |
| B. | mixed good. |
| C. | private good. |
| D. | service. |
| Answer» A. public good. | |
| 88. |
Of those listed below, the best example of a pure public good is |
| A. | a radio broadcast. |
| B. | a book. |
| C. | a rock concert held in a small auditorium. |
| D. | a state lottery |
| Answer» A. a radio broadcast. | |
| 89. |
Non-rivalry is a feature of |
| A. | public goods. |
| B. | goods but not services. |
| C. | excludable goods. d. all non-excludable goo |
| Answer» A. public goods. | |
| 90. |
Non-excludability is a feature of |
| A. | goods but not services |
| B. | goods with an external cost. |
| C. | public goods d. all non-rival goo |
| Answer» C. public goods d. all non-rival goo | |
| 91. |
Pure private goods are those for which consumption is |
| A. | non-rival and excludable. |
| B. | rival and excludable. |
| C. | rival and non-excludable. |
| D. | non-rival and non-excludable. |
| Answer» B. rival and excludable. | |
| 92. |
When consumption is rival and excludable, the product is a |
| A. | private good. |
| B. | service not a good. |
| C. | mixed good. d. public goo |
| Answer» A. private good. | |
| 93. |
A good or service or a resource is non-excludable if |
| A. | it is possible to prevent someone from enjoying the benefits of it. |
| B. | its use by one person decreases the quantity available for someone else. |
| C. | it is not possible to prevent someone from benefiting from it. |
| D. | its use by one person does not decrease the quantity available for someone else |
| Answer» C. it is not possible to prevent someone from benefiting from it. | |
| 94. |
An uncrowded toll road is ________ because it is ________. |
| A. | not a pure public good; non-rival but excludable |
| B. | not a pure public good; both rival and excludable |
| C. | a pure public good; both non-rival and non-excludable |
| D. | not a pure public good; non-excludable but rival |
| Answer» A. not a pure public good; non-rival but excludable | |
| 95. |
A good or service or a resource is excludable if |
| A. | it is possible to prevent someone from enjoying the benefits of it. |
| B. | its use by one person decreases the quantity available for someone else. |
| C. | it is not possible to prevent someone from enjoying the benefits of it. |
| D. | its use by one person does not decrease the quantity available for someone else. |
| Answer» A. it is possible to prevent someone from enjoying the benefits of it. | |
| 96. |
A good or service or a resource is non-rival if |
| A. | it is not possible to prevent someone from enjoying the benefits of it. |
| B. | it is possible to prevent someone from enjoying the benefits of it. |
| C. | its use by one person decreases the quantity available for someone else. |
| D. | its use by one person does not decrease the quantity available for someone else. |
| Answer» A. it is not possible to prevent someone from enjoying the benefits of it. | |
| 97. |
If the consumption of Good A by one person does not decrease the consumption of Good A by another person, then the good is said to |
| A. | non-excludable. |
| B. | excludable. |
| C. | non-rival. |
| D. | rival. |
| Answer» C. non-rival. | |
| 98. |
The nature of federalism was changed forever by |
| A. | missouri v. department of interior |
| B. | gibbons v. ogden. |
| C. | the civil war |
| D. | chief justice rutledge. |
| Answer» C. the civil war | |
| 99. |
Cooperative federalism is characterized by |
| A. | increasing power of local governments. |
| B. | a stronger, more influential national government. |
| C. | a shift in power from the national to state governments. |
| D. | stronger state governments. |
| Answer» B. a stronger, more influential national government. | |
| 100. |
Peacock and Wiseman Hypothesis on public expenditure consists of three concepts which are: |
| A. | subscription effect, tax effect, expenditure effect |
| B. | tax effect, expenditure effect, consumption effect |
| C. | displacement effect, concentration effect, inspection effect |
| D. | consumption effect, labour effect, income effect |
| Answer» C. displacement effect, concentration effect, inspection effect | |
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