FISCAL SYSTEM MCQS SET 16

FISCAL SYSTEM MCQS SET 16

151) The minimum effect of Direct Taxes is on :
A) food price
B) consumer goods
C) capital goods
D) income
Answer: income

   
152) Companies pay Corporation Tax on their:
A) investment
B) production
C) sales proceeds
D) incomes
Answer: incomes

   
153) In a country like India, why should an increase of direct taxes be preferred to an increase
in indirect taxes?
A) Direct taxes serve the end of Socialism by taking away the excessive wealth from the rich
B) Direct taxes involve the well-off sections of the society while indirect taxes affect the masses
C) It is easy to realise direct taxes and is thus useful in a country troubled by tax evasion
D) All of the above
Answer: All of the above

   
154) Fresh evalution of every item of expenditure from the very beginning of each financial
year is called:
A) fresh Budgeting
B) deficit Budgeting
C) performance Budgeting
D) zero-based Budgeting
Answer: zero-based Budgeting

   
155) The rate of growth of per capita income is equal to:
A) Rate of growth of national income divided by the rate of growth of population
B) Growth in national income divided by the increase in population
C) Rate of growth of national income minus the rate of growth of population
D) Rate of growth of national income
Answer: Rate of growth of national income minus the rate of growth of population


156) To know whether the rich are getting richer and the poor getting poorer, it is necessary to
compare:
A) the availability of foodgrains among two sets of people, one rich and the other poor, over different periods of time
B) the distribution of income of an identical set of income recipients in different, periods of time
C) the wholesale price index over different periods of time for different regions
D) the distribution of income of different sets of income recipients at a point of time
Answer: the distribution of income of an identical set of income recipients in different, periods of time
   

157) National income of India is compiled by:
A) Finance Commission
B) Indian Statistical Institute
C) National Development Council
D) Central Statistical Organisation
Answer: Central Statistical Organisation

   
158) Zero base budgeting provides for a/an:
A) Increased budget for all progarammes
B) Decreased budget for all the programmes
C) Re-examination of all the programmes
D) None of the above
Answer: Re-examination of all the programmes
    

159) Which one of the following is the correct statement? Service tax is a/an
A) direct tax levied by the Central Government
B) indirect tax levied by the Central Government
C) direct tax levied by the State Government
D) indirect tax levied by the State Government
Answer: indirect tax levied by the Central Government

   
160) If saving exceeds investment, the national income will :
A) fall
B) rise
C) fluctuate
D) remain constant
Answer: remain constant