Economics Mock Test #6

10 Questions | Total Attempts: 74

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Economics Mock Test #6


Questions and Answers
  • 1. 
    Which of the following options is an essential condition to satisfy the peoperty of a 'pure private good'?
    • A. 

      Non exclusion

    • B. 

      Exclusion

    • C. 

      Low satisfation

    • D. 

      None of the above

  • 2. 
    Which one of the following is not a fiscal instrument?
    • A. 

      Taxation

    • B. 

      Open Market Operation

    • C. 

      Subsidy

    • D. 

      Public Expenditure

  • 3. 
    The form of Taxation in which tax rate is increased when tax base expands
    • A. 

      Progressive Taxation

    • B. 

      Regressive Taxation

    • C. 

      Degressive Taxation

    • D. 

      Proportional Taxation

  • 4. 
    Which one of the following is a meassure of Fiscal Policy?
    • A. 

      CRR

    • B. 

      SLR

    • C. 

      Bank Rate

    • D. 

      Tax Rate

  • 5. 
    Modern Canons of Taxation was propounded by 
    • A. 

      Bestable

    • B. 

      Seligman

    • C. 

      Adam Smith

    • D. 

      Pigou

  • 6. 
    Income tax is based on the principle of
    • A. 

      Ability to Pay

    • B. 

      Willingness to Pay

    • C. 

      Benefits Received

    • D. 

      All of the above

  • 7. 
    Sound Tax Policy is devised mainly on the basis of 
    • A. 

      High income elasticity

    • B. 

      High price elasticity

    • C. 

      Elastic tax base

    • D. 

      Maximum Tax Revenue

  • 8. 
    Fiscal Federalism refers to 
    • A. 

      Division of political powers between center and states

    • B. 

      Organising and implementing economic plans

    • C. 

      Division of economic functions and resources among different layers of government

    • D. 

      None of these

  • 9. 
    What is Pump Priming?
    • A. 

      Injection of purchasing power into the public through government spending

    • B. 

      Withdrawal of purchasing power from the public

    • C. 

      Balancing revenue and expenditure

    • D. 

      None of the above

  • 10. 
    Primary Deficit means 
    • A. 

      Fiscal deficit - interest

    • B. 

      Revenue deficit - interest payments

    • C. 

      Fiscal deficit + Revenue deficit

    • D. 

      Budgetary deficit

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