FISCAL SYSTEM MCQS SET 26

FISCAL SYSTEM MCQS SET 26

251) Which one among the following is not component of fiscal policy?
A) Taxation policy
B) Public debt policy
C) Trade policy
D) Public expenditure policy
Answer: Trade policy

   
252) The total value of goods and services, produced' in a country during a given period is
A) Disposable income
B) National income
C) Per capita income
D) Net national income
Answer: National income

   
253) In the context of Indian economy, consider the following statements:
1. The growth rate of GDP has - steadily increased in the last five years.
2. The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2
Answer: 2 only

   
254) Economic growth is usually coupled with
A) deflation
B) inflation
C) stagflation
D) hyperinflation
Answer: inflation

   
255) In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth
Games in India amounted to
A) Export
B) Import
C) Production
D) Consumption
Answer: Export


256) Which one of the following statements appropriately describes the “fiscal stimulus”?
A) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth
B) It is an intense affirmative action of the Government to boost economic activity in the country
C) It is Government's intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
D) It is an extreme affirmative action by the Government to pursue - its policy of financial inclusion
Answer: It is an intense affirmative action of the Government to boost economic activity in the country
 
   
257) Consider the following actions which the Government can take:
1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from Flls.
Which of the above action/actions can help in reducing the current account deficit?
A) 1 and 2
B) 2 and 3
C) 3 only
D) 1 and 3
Answer: 1 and 3
 
   
258) A rapid increase in the rate of inflation is sometimes attributed to the “base effect”.
What is “base effect”?
A) It is the impact of drastic deficiency in supply due to failure of crops
B) it is the impact of the surge in demand due to rapid economic growth
C) It is the impact of the price levels of previous year on the calculation of inflation rate
D) None of the statements (a), (b) and (0) given above is correct in this context
Answer: It is the impact of the price levels of previous year on the calculation of inflation rate

   
259) Which one of the following is not a feature of “Value Added Tax”?
A) It is a multi-point destination-based system of taxation
B) It is a tax levied on value addition at each stage of transaction in the production distribution chain
C) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
D) It is basically a subject of the Central Government and the State Governments are only a facilitator for its Successful implementation
Answer: It is basically a subject of the Central Government and the State Governments are only a facilitator for its Successful implementation

   
260) National Academy of Customs and Excise is located at:
A) Hindupur (Andhra Pradesh)
B) Kolkata (West Bengal)
C) Bishnupur (Manipur)
D) Nanded (Maharashtra)
Answer: Hindupur (Andhra Pradesh)