FISCAL SYSTEM MCQS SET 02

FISCAL SYSTEM MCQS SET 02

11) Consider the following statements :
(A) In India since independence the share of the primary sector has been declining while the shares of the secondary and territory sectors have been increasing
(B) This trend shows that Indian economy is passing through the transition from an agricultural to an industrial economy
While one of the following is correct?
A) both A and B are correct
B) both A and B are wrong
C) A is correct, B is wrong
D) A is wrong, B is correct
Answer: both A and B are correct

   
12) Which of the following gives a correct picture of the share of various sectors in economic growth in India over the years?
1. Primary sector - stagnant
2. Secondary sector - increasing
3. Territory sector - decreasing
A) 1 and 2
B) 2 and 3
C) 2 only
D) 1 only
Answer: 2 only
   
13) Which of the following is the basis for determining the national income?
A) Total revenue of the State
B) Net profit earned and expenditure incurred by the State
C) Production of goods and services
D) All of the above
Answer: Production of goods and services

   
14) Which of the following is not a method of estimating national income?
A) Income method
B) Value-added method
C) Expenditure method
D) Export-import method
Answer: Export-import method

   
15) The national income of India is estimated mainly through :
A) production method alone
B) expenditure method alone
C) production and expenditure methods
D) production and income methods
Answer: production and income methods


16) Which of the following are referred to as the developed economies?
A) Countries earning huge industrial profits
B) Countries proficient in trade and export
C) Countries having large per capita income
D) Countries advanced in technology
Answer: Countries having large per capita income

   
17) An advalorem duty is a tax on the basis of :
A) the price of a commodity
B) the value added
C) the advertisement expenditure
D) the unit of the commodity
Answer: the price of a commodity
   
18) The budget is presented to the Parliament o :
A) the firlst day of February
B) 15th March
C) the last day of March
D) 1st April
Answer: the firlst day of February

   
19) Which of the following is not true about 'vote-on-account'?
A) It is a budget presented in the Parliament to cover the deficit left by the last
budget
B) It does not allow the Government to set for the economic policies of the new
plan which starts from April 1.
C) It prevents the Government from imposing fresh taxes or withdrawing old one
D) This allows the Government to withdraw an amount for a period with the
consent of Parliament.
Answer: It is a budget presented in the Parliament to cover the deficit left by the last budget

   
20) Which State in India has the highest average per capita annual earnings of factory workers?
A) Maharashtra
B) Madhya Pradesh
C) West Bengal
D) Tamil Nadu
Answer: West Bengal