Economics Mock Test #6
- 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
Correct Answer
B. Exclusion -
- 2.
Which one of the following is not a fiscal instrument?
- A.
Taxation
- B.
Open Market Operation
- C.
Subsidy
- D.
Public Expenditure
Correct Answer
B. Open Market Operation -
- 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
Correct Answer
A. Progressive Taxation -
- 4.
Which one of the following is a meassure of Fiscal Policy?
- A.
CRR
- B.
SLR
- C.
Bank Rate
- D.
Tax Rate
Correct Answer
D. Tax Rate -
- 5.
Modern Canons of Taxation was propounded by
- A.
Bestable
- B.
Seligman
- C.
Adam Smith
- D.
Pigou
Correct Answer
C. Adam Smith -
- 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
Correct Answer
A. Ability to Pay -
- 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
Correct Answer
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
Correct Answer
C. Division of economic functions and resources among different layers of government -
- 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
Correct Answer
A. Injection of purchasing power into the public through government spending -
- 10.
Primary Deficit means
- A.
Fiscal deficit - interest
- B.
Revenue deficit - interest payments
- C.
Fiscal deficit + Revenue deficit
- D.
Budgetary deficit
Correct Answer
A. Fiscal deficit - interest -
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Current Version
-
Mar 19, 2022Quiz Edited by
ProProfs Editorial Team -
Oct 26, 2014Quiz Created by
George Paily
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