FISCAL SYSTEM MCQS SET 23

FISCAL SYSTEM MCQS SET 23

221) Net factor income from abroad added to GDP gives:
A) GNP
B) NNP
C) NDP
D) per capita income
Answer: GNP

   
222) Gross National Income is always more than Net National Income because it includes:
A) foreign income
B) capital consumption allowance
C) indirect taxes
D) direct taxes
Answer: capital consumption allowance
 
   
223) Gross National Product at market prices is defined as :
A) the market value of all final goods and services produced in an economy taking into account net factor income from abroad
B) the market value of all final goods and services produced in an economy
C) the market value of all final goods and services produced in an economy plus indirect taxes
D) the market value of all final goods and services produced in an economy plus indirect taxes minus subsidies
Answer: the market value of all final goods and services produced in an economy taking into account net factor income from abroad
 
   
224) National income refers to:
A) money value of goods 'and services produced in a country during a year.
B) money value of stocks and shares of a country during a year.
C) money value of capital goods produced by a country during a year.
D) money value of consumer goods produced by a country during a year.
Answer: money value of goods 'and services produced in a country during a year.

   
225) National income calculated at current prices in India has shown a tendency to rise at a
faster rate than national income at constant prices, This is because:
A) India's population has been rising fast
B) General price level in the economy has been rising rapidly
C) Statistically manipulations are employed by the Planning
D) Base year chosen is an abnormal year
Answer: General price level in the economy has been rising rapidly


226) The measure of a worker's real wage is :
A) the change in his productivity over a given time
B) his earning after deduction at source
C) his daily earnings
D) the purchasing power of his earnings
Answer: the purchasing power of his earnings

   
227) Which one of the following forms the largest share of deficit in Govt. of India budget?
A) Primary deficit
B) Fiscal deficit
C) Revenue deficit
D) Budgetary deficit
Answer: Fiscal deficit

   
228) Gross National Product is less than Gross Domestic Product depending upon whether:
A) indirect taxes are more than subsidies
B) depreciation is included or not
C) net factor income from abroad is positive or negative
D) indirect taxes are less than subsides
Answer: net factor income from abroad is positive or negative

   
229) One of the following leads to underestimation of national income in India:
1. Inflation
2. Devaluation
3. Non-Monetary consumption
4. Large unorganized sector
Choose correct answer from:
A) 1, 2, 3 and 4
B) 1, 3 and4
C) 3 and 4
D) 2, 3 and 4
Answer: 3 and 4
 
   
230) Match the following:
List I       List II
A. Fiscal Deficit       1. Difference between Total Expenditure and total receipts
B. Budget Deficit       2. Difference between Revenue Expenditure and Revenue Receipt
C. Revenue Dencit       3. Difference between Total Expenditure and Total Receipts
D. Primary Deficit       4. Difference between Total Expenditure and Revenue Receipts plus non-debt creating capital receipts minus interest payments
Below codes are given in A B C D order
A) 3 1 2 4
B) 4 3 2 1
C) 1 3 2 4
D) 3 1 4 2
Answer: 3 1 2 4