FISCAL SYSTEM MCQS SET 14

FISCAL SYSTEM MCQS SET 14

131) Wanchoo Committee dealt with:
A) Agricultural prices
B) Agricultural taxation
C) Direct taxes
D) Monopolies and trade practices
Answer: Direct taxes

   
132) After 1991, the Central Government implemented various far-reaching reforms in the area
of taxation. This was based on the recommendations of the:
A) Wanchoo Committee
B) Rajah Chelliah Committee
C) Raj Committee
D) Narsimhan Committee
Answer: Rajah Chelliah Committee

   
133) Development is :
A) synonymous with economic growth
B) narrower than economic growth
C) wider than economic growth
D) not related to economic growth
Answer: wider than economic growth

   
134) In the short run, a producer continues his production as long as he covers:
A) variable cost
B) fixed cost
C) average cost
D) marginal cost
Answer: fixed cost

   
135) Invisible trade is a trade.
A) of government with public institutions.
B) of the services like the bank, marine Companies and shipping companies
C) of corporate and financial institutions with government
D) of government with other countries
Answer: of the services like the bank, marine Companies and shipping companies


136) What is 'Recession'?
A) Rise in the cost of production, especially because of wage increase
B) Increase in money supply without a matching increase in production
C) Reduction in production and employment for want of sufficient demand for goods
D) None of these
Answer: Reduction in production and employment for want of sufficient demand for goods

   
137) A Multinational is:
A) a company operating in several countries
B) a company having shareholders from more than one country
C) a company which does charitable work in poor countries
D) a company that operates only in those countries that do not have import restrictions
Answer: a company operating in several countries

   
138) The Indian budget includes:
A) revised estimates for the current year
B) budget estimates for the following year
C) actual figures of the preceding year
D) all of these
Answer: all of these

   
139) Funds belonging to Government of India are kept in:
1. Consolidated Fund of India
2. Public Account Fund of India
3. Contingency Fund of India
A) 1 and 2
B) 2 and 3
C) 1 and 3
D) 1, 2 and 3
Answer: 1, 2 and 3

   
140) A deflator is a technique of:
A) adjusting for changes in price level
B) adjusting for change in commodity
C) accounting for higher increase of GNP
D) accounting for decline of GNP
Answer: adjusting for changes in price level