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) .
| 101. |
According to Peackock Wiseman hypothesis, A discontinuity in the growth pattern which produces expenditure peak during social disturbances is referred to as: |
| A. | displacement effect |
| B. | concentration effect |
| C. | inspection effect |
| D. | substitution effect |
| Answer» A. displacement effect | |
| 102. |
The theory of fiscal policy derives from |
| A. | principle of sound finance |
| B. | n.i. analysis |
| C. | welfare economics |
| D. | none of these |
| Answer» A. principle of sound finance | |
| 103. |
Fiscal Federalism refers to |
| A. | sharing of political power between centre and states |
| B. | organising and implementing economic plans |
| C. | division of economic functions and resources among different layers of government |
| D. | none of these |
| Answer» C. division of economic functions and resources among different layers of government | |
| 104. |
Marginal cost of providing the public goods to additional consumers is: |
| A. | 0 |
| B. | 1 |
| C. | 2 |
| D. | 3 |
| Answer» A. 0 | |
| 105. |
Mixed goods are those goods having benefits which are: |
| A. | rival |
| B. | non-rival |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 106. |
Escheat is an example of |
| A. | direct tax |
| B. | indirect tax |
| C. | both a & b |
| D. | none of these |
| Answer» D. none of these | |
| 107. |
Gift tax was introduced in the year |
| A. | 1958 |
| B. | 1959 |
| C. | 1960 |
| D. | 1961 |
| Answer» A. 1958 | |
| 108. |
_________ is a broad based and a single comprehensive tax levied on goods and services consumed in an economy |
| A. | vat |
| B. | cenvat |
| C. | gst |
| D. | none of these |
| Answer» C. gst | |
| 109. |
In India GST was introduced in the year |
| A. | 2016 |
| B. | 2017 |
| C. | 2018 |
| D. | 2019 |
| Answer» B. 2017 | |
| 110. |
______________________ is the first country to implement GST |
| A. | usa |
| B. | u k |
| C. | canada |
| D. | france |
| Answer» D. france | |
| 111. |
In which year GST was first introduced |
| A. | 1952 |
| B. | 1953 |
| C. | 1954 |
| D. | 1955 |
| Answer» C. 1954 | |
| 112. |
The movement from older level of expenditure and taxation to a new and higher level is called |
| A. | concentration effect |
| B. | inspection effect |
| C. | displacement effect |
| D. | none of these |
| Answer» C. displacement effect | |
| 113. |
The diffusion theory was associated with the name of |
| A. | dalton |
| B. | keynes |
| C. | r a musgrave |
| D. | mansfield |
| Answer» D. mansfield | |
| 114. |
The existence of economic inequalities among the states is known as |
| A. | vertical imbalance |
| B. | horizontal imbalance |
| C. | parallel imbalance |
| D. | none of these |
| Answer» B. horizontal imbalance | |
| 115. |
When expenditure exceeds total tax revenue, it is called: |
| A. | surplus budget |
| B. | balanced budget |
| C. | deficit budget |
| D. | none of these |
| Answer» A. surplus budget | |
| 116. |
The Benefit Principle of taxation states that tax should be paid in proportion to: |
| A. | income |
| B. | expenditure |
| C. | benefit |
| D. | utility |
| Answer» C. benefit | |
| 117. |
The most accepted theory of taxation in modern times: |
| A. | benefit theory |
| B. | cost of service |
| C. | financial theory |
| D. | ability theory |
| Answer» D. ability theory | |
| 118. |
In which of the following type of economy, the revenue from taxation is likely to be the least? |
| A. | free market economy |
| B. | keynesian economy |
| C. | mixed economy |
| D. | socialist economy |
| Answer» D. socialist economy | |
| 119. |
The horizontal fiscal imbalance that arises in a fiscal federation is also called: |
| A. | problem of equalisation |
| B. | problem of efficiency |
| C. | problem of effectiveness |
| D. | problem of economy |
| Answer» A. problem of equalisation | |
| 120. |
Tax revenue sharing between the federal and sub-national governments is aimed at correcting which of the following type of imbalances? |
| A. | vertical imbalances |
| B. | horizontal imbalances |
| C. | diagonal imbalances |
| D. | criss-cross imbalances |
| Answer» A. vertical imbalances | |
| 121. |
In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Adam Smith referred this as: |
| A. | invisible hand |
| B. | direct intervention |
| C. | collective spirit |
| D. | private spirit |
| Answer» A. invisible hand | |
| 122. |
Expenditure incurred by the Government on building durable assets, like highways, multipurpose dams, irrigation projects are in the nature of |
| A. | capital expenditure |
| B. | revenue expenditure |
| C. | transfer expenditure |
| D. | unproductive expenditure |
| Answer» A. capital expenditure | |
| 123. |
Which of the following describes the situation where revenues and expenditures are equal during a given period? |
| A. | public debt |
| B. | budget surplus |
| C. | balanced budget |
| D. | budget deficit |
| Answer» C. balanced budget | |
| 124. |
During the process of economic development, the share of public expenditure to Gross Domestic Product tends to expand. This is called: |
| A. | wagner’s law |
| B. | keynes law |
| C. | adam smith’s theory |
| D. | brettonwoods law |
| Answer» A. wagner’s law | |
| 125. |
The principle of public expenditure that requires that Government should avoid shortfall of revenue in comparison with its expenditure is termed as |
| A. | canon of deficit |
| B. | canon of surplus |
| C. | canon of elasticity |
| D. | canon of sanction |
| Answer» B. canon of surplus | |
| 126. |
The ratio of change in the national income in relation to the change in government spending that causes it is referred to as: |
| A. | fiscal multiplier |
| B. | spending ratio |
| C. | expenditure ratio |
| D. | cost multiplier |
| Answer» A. fiscal multiplier | |
| 127. |
Which of the following occurs when all taxes and other revenues exceed government expenditures for a year? |
| A. | public debt |
| B. | budget surplus |
| C. | balanced budget |
| D. | budget deficit |
| Answer» B. budget surplus | |
| 128. |
Public goods have two criteria, one of which is non-excludability. What does that mean? |
| A. | it is not possible to exclude individuals from consumption. |
| B. | it is not possible to produce them without externalities |
| C. | consumption by one does not affect consumption of others |
| D. | a and c. |
| Answer» D. a and c. | |
| 129. |
The role of the Finance Commission in Central-State fiscal relations has been undermined by |
| A. | the state governments |
| B. | the zonal councils |
| C. | the planning commission |
| D. | the election commission |
| Answer» C. the planning commission | |
| 130. |
The term ‘Performance Budget’ was coined by |
| A. | administrative reforms commission of india |
| B. | second hoover commission of usa |
| C. | estimates committee of india |
| D. | first hoover commission of usa |
| Answer» D. first hoover commission of usa | |
| 131. |
If the public debt can be financed without adding to inflation or causing interest rates to rise, it is said to be: |
| A. | only a burden on future generations. |
| B. | in primary balance |
| C. | sustainable |
| D. | following the golden rule of the public finances. |
| Answer» C. sustainable | |
| 132. |
Progressive Tax System is that system in which what happens in the rate of tax if there is an increase in income? |
| A. | destruction |
| B. | becomes equal |
| C. | growth |
| D. | becomes unequal |
| Answer» C. growth | |
| 133. |
Statutory incidence of a tax deals with |
| A. | the amount of revenue left over after taxes. |
| B. | the amount of taxes paid after accounting for inflation. |
| C. | the person(s) legally responsible for paying the tax. |
| D. | the amount of tax revenue generated after a tax is imposed. |
| Answer» C. the person(s) legally responsible for paying the tax. | |
| 134. |
Who deals with income and expenditure of public authorities? |
| A. | public finance |
| B. | private finance |
| C. | local govt |
| D. | none of these |
| Answer» A. public finance | |
| 135. |
Unfunded debts are those debts which are paid back within ………… |
| A. | two year |
| B. | one year |
| C. | three year |
| D. | six months |
| Answer» B. one year | |
| 136. |
Which one of the following is not a feature of private finance: |
| A. | balancing of income and expenditure |
| B. | secrecy |
| C. | saving some part of income |
| D. | publicity |
| Answer» D. publicity | |
| 137. |
Government budget is balanced when |
| A. | govt. expenditure outstrips tax receipts |
| B. | govt. tax receipts outstrips expenditure |
| C. | govt. expenditure equals tax revenues |
| D. | none of the above |
| Answer» C. govt. expenditure equals tax revenues | |
| 138. |
The government can collect funds from |
| A. | taxes |
| B. | fees |
| C. | prices of public goods |
| D. | all the three |
| Answer» D. all the three | |
| 139. |
Progressive taxes: |
| A. | increase government revenue |
| B. | bring equality in distribution of incomes |
| C. | act as penalty for rich people |
| D. | both a and b |
| Answer» D. both a and b | |
| 140. |
The most important source of revenue to the states is |
| A. | sales tax |
| B. | service tax |
| C. | excise duty |
| D. | none of the above |
| Answer» D. none of the above | |
| 141. |
The tax levied on the interstate trade of goods is |
| A. | sales tax |
| B. | excise tax |
| C. | service tax |
| D. | central sales tax |
| Answer» D. central sales tax | |
| 142. |
Which of the following taxes is/are withdrawn or abolished? |
| A. | interest tax |
| B. | estate duty |
| C. | gift tax |
| D. | all the above |
| Answer» D. all the above | |
| 143. |
………………...is that process in which taxpayer tries to shift burden of tax on others. |
| A. | impact of tax |
| B. | shifting of tax |
| C. | incidence of tax |
| D. | elasticity of tax |
| Answer» B. shifting of tax | |
| 144. |
Shifting of tax depends on ..............of goods. |
| A. | elasticity |
| B. | quality |
| C. | quantity |
| D. | durability |
| Answer» A. elasticity | |
| 145. |
The tax levied by the union government on income of individuals is known as |
| A. | personal income tax |
| B. | interest tax |
| C. | wealth tax |
| D. | corporation tax |
| Answer» A. personal income tax | |
| 146. |
The tax on net income of companies is |
| A. | personal income tax |
| B. | interest tax |
| C. | wealth tax |
| D. | corporation tax |
| Answer» D. corporation tax | |
| 147. |
All type of income received to government is called .............. income. |
| A. | private |
| B. | public |
| C. | company |
| D. | partnership |
| Answer» B. public | |
| 148. |
The difference between total expenditure and total receipts is |
| A. | fiscal deficit |
| B. | budget deficit |
| C. | primary deficit |
| D. | revenue deficit |
| Answer» D. revenue deficit | |
| 149. |
Lump sum taxes |
| A. | create no excess burden. |
| B. | are not as widely used as other forms of taxation. |
| C. | generally lack a sense of equity. |
| D. | all of the above |
| Answer» D. all of the above | |
| 150. |
Externalities can be positive because |
| A. | marginal damages do not last over time. |
| B. | utility can be impacted positively as well as negatively. |
| C. | there is no concept for marginal benefit. |
| D. | positive externalities are subsidies. |
| Answer» B. utility can be impacted positively as well as negatively. | |
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