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
- 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
Questions: 10 | Attempts: 20368 | Last updated: Jun 15, 2020
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