ECONOMY MCQS SET 107

ECONOMY MCQS SET 107

1061) Match List I with List II and select the correct answer using the codes given below the lists
List I      List II
A. Income Tax      1. Levied and collected by the Central Government
B. Corporation Tax      2. Levied and collected by the Central Government and shared by the State Government
C. Professional Tax      3. Levied by the Tax Central Government but collected and appropriated by the State Government
D. Stamp Duties       4. Levied and collected by the State Governments
Below the Codes are given in A B C D order
A) 2 4 3 1
B) 2 3 4 1
C) 2 1 4 3
D) 4 1 3 2
Correct Answer: 2 1 4 3
   
1062) Consider the following taxes
1. Sales tax
2. Value-added tax
3. Property tax
Which of the taxes given above are Ad valorem tax/taxes?
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) All of these
Correct Answer: All of these
  
1063) Minimum Alternate Tax (MAT) is imposed by the Indian Government in addition to which one of the following tax?
A) Personal Income tax
B) Corporation tax
C) Service tax
D) Expenditure tax
Correct Answer: Corporation tax
   
1064) Which of the following is /are among the noticeable features of the recommendations of the Thirteenth Finance Commission?
1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design.
2. A design for the creation of lakhs of jobs in the next ten years in Consonance with India's demographic dividend.
3. Devolution of a specified share of Central taxes to local bodies as grants.
Select the correct answer using the Codes given below
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) Only 1
Correct Answer: Only 1
   
1065) Which of the following statements appropriately describes the 'fiscal stimullus'?
A) It is a massive investment by the government in manufacturing sector to ensure the supply of goods to meet the demand surge by rapid economic growth.
B) It is an intense affirmative action of the government to boost economic activity in the country.
C) It is the government intensive action of financial institutions to ensure disbursement of loans to agriculture and allied sector to promote greater food production and contain food inflation.
D) None of the above
Correct Answer: It is an intense affirmative action of the government to boost economic activity in the country.

1066) Which among the following is/are true?
1. Deficit financing does not lead to inflation if adopted in small doses.
2. Deficit financing is an often used tool for financing budgetary deficits.
Select the correct answer using the codes given below
A) Only 1
B) Only 2
C) Both 1 and 2
D) None of these
Correct Answer: Both 1 and 2
   
1067) In India. The tax proceeds of which one of the following as a% of gross tax revenue has significantly declined in the last five year?
A) Service tax
B) Personal income tax
C) Excise duty
D) Corporation tax
Correct Answer: Excise duty
   
1068) Consider the following statements
1. Value added tax was introduced for the first time in France.
2. Value-added tax is levied on the added value that results from each exchange.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
1069) Which one of the following was not stipulated in the Fiscal Responsibility and Budget Management Act, 2003?
A) Elimination of revenue deficit by the end of the fiscal year 2007-08
B) Non-borrowing the Central Government from Reserve Bank of India except under certain circumstances
C) Elimination of primary deficit by the end of the fiscal year 2008-09
D) None of the above
Correct Answer: Elimination of primary deficit by the end of the fiscal year 2008-09
  
1070) Consider the following expenditures
1. Interest payments
2. Subsidies
3. Defence expenditure
Which of the expenditures given above is/are Non-Plan Revenue Expenditure?
A) 1 and 2
B) 1 and 3
C) Only 1
D) All of these
Correct Answer: All of these