MCQs
Total Questions : 217
| Page 21 of 22 pages
Question 201.
List I
List II
A. Partial convertibility
1. Unified exchange rate, applied for export and import of goods only, visible transaction of BoP.
B. Convertibility on trade account
2. Currency can be converted on all accounts
C. Convertibility on current account
3. 60% of foreign exchange to be converted at market rates and rest at the official rate.
D. Full Convertibility
4. Full convertibility in all visible and invisible transactions of goods and services.Codes: A B C D
List I
List II
A. Partial convertibility
1. Unified exchange rate, applied for export and import of goods only, visible transaction of BoP.
B. Convertibility on trade account
2. Currency can be converted on all accounts
C. Convertibility on current account
3. 60% of foreign exchange to be converted at market rates and rest at the official rate.
D. Full Convertibility
4. Full convertibility in all visible and invisible transactions of goods and services.Codes: A B C D
Answer: Option C. -> A-3, B-1, C-4, D-2
Answer: (c)
Answer: (c)
Answer: Option A. -> disinvestment of Public Sector Equity
Answer: (a)
Answer: (a)
Answer: Option B. -> more heavily on the poor than on the rich
Answer: (b)
In terms of individual income and wealth, a regressive tax imposes a greater burden on the poor than on the rich.
There is an inverse relationship between the tax rate and the taxpayer’s ability to pay, as measured by assets, consumption, or income.
These taxes tend to reduce the tax burden of the well-to-do, as they shift the burden disproportionately to the needy.
Answer: (b)
In terms of individual income and wealth, a regressive tax imposes a greater burden on the poor than on the rich.
There is an inverse relationship between the tax rate and the taxpayer’s ability to pay, as measured by assets, consumption, or income.
These taxes tend to reduce the tax burden of the well-to-do, as they shift the burden disproportionately to the needy.
Answer: Option A. -> Dalten
Answer: (a)
The 'Principle of Maximum Social Advantage' was introduced by British economist Hugh Dalton.
According to Dalton, “The best system of public finance is that which secures the maximum social advantage from the operations which it conducts."
Answer: (a)
The 'Principle of Maximum Social Advantage' was introduced by British economist Hugh Dalton.
According to Dalton, “The best system of public finance is that which secures the maximum social advantage from the operations which it conducts."
Answer: Option D. -> Tax policy
Answer: (d)
Answer: (d)
Answer: Option D. -> Implicit costs
Answer: (d)
In economics, an implicit is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires.
It is the opposite of an explicit cost, which is borne directly. In other words, an implicit cost is any cost that results from using an asset instead of renting, selling, or lending it. These are costs a business incurs without actually spending money.
Answer: (d)
In economics, an implicit is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires.
It is the opposite of an explicit cost, which is borne directly. In other words, an implicit cost is any cost that results from using an asset instead of renting, selling, or lending it. These are costs a business incurs without actually spending money.
Question 207. Match columns A and B wherein Column B defines Column A Column B I. a. II. b. III. c.
Column A
Column B
I. Capital expenditure
1. Includes interest payments, subsidies, defence expenditure
II. Plan expenditure
2. Includes loans to PSUs, states, foreign governments
III. Revenue expenditure
3. Includes expenditure on central plans such as agriculture, rural development, irrigation, transport, communications, environment and welfare schemes
Codes: I II III
Column A
Column B
I. Capital expenditure
1. Includes interest payments, subsidies, defence expenditure
II. Plan expenditure
2. Includes loans to PSUs, states, foreign governments
III. Revenue expenditure
3. Includes expenditure on central plans such as agriculture, rural development, irrigation, transport, communications, environment and welfare schemes
Codes: I II III
Answer: Option C. -> I-b, II-c, III-a
Answer: (c)
All asset creating and productive expenditure is part of plan expenditure, and all non-productive, consumptive and non- asset-building expenditure is part of non-plan expenditure.
Non-plan expenditure is further divided into revenue expenditure and capital expenditure
Answer: (c)
All asset creating and productive expenditure is part of plan expenditure, and all non-productive, consumptive and non- asset-building expenditure is part of non-plan expenditure.
Non-plan expenditure is further divided into revenue expenditure and capital expenditure
Question 208. Which statements about indirect taxes in India are true?
- Yield from indirect taxes is more than that from direct taxes.
- Indirect taxes have grown faster than direct taxes after 1947.
- Indirect taxes are ultimately paid for by persons who do not actually pay taxes to the government.
- Increase in indirect taxes is good in a developing country.
Answer: Option D. -> 1, 2 and 3
Answer: (d)
Answer: (d)
Answer: Option C. -> production
Answer: (c)
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities.
Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.
Answer: (c)
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities.
Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.
Answer: Option C. -> Self regulatory Organisations
Answer: (c)
A self-regulatory organization (SRO) is a nongovernmental organization that has the power to create and enforce industry regulations and standards.
The priority is to protect investors through the establishment of rules that promote ethics and equality
Answer: (c)
A self-regulatory organization (SRO) is a nongovernmental organization that has the power to create and enforce industry regulations and standards.
The priority is to protect investors through the establishment of rules that promote ethics and equality
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