Economics Mock Test #6

1. Which one of the following is a meassure of Fiscal Policy?

CRR

SLR

Bank Rate

Tax Rate

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

Taxation

Open Market Operation

Subsidy

Public Expenditure

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

Progressive Taxation

Regressive Taxation

Degressive Taxation

Proportional Taxation

4. What is Pump Priming?

Injection of purchasing power into the public through government spending

Withdrawal of purchasing power from the public

Balancing revenue and expenditure

None of the above

5. Fiscal Federalism refers to

Division of political powers between center and states

Organising and implementing economic plans

Division of economic functions and resources among different layers of government

None of these

6. Which of the following options is an essential condition to satisfy the peoperty of a 'pure private good'?

Non exclusion

Exclusion

Low satisfation

None of the above

7. Modern Canons of Taxation was propounded by

Bestable

Seligman

Adam Smith

Pigou

8. Income tax is based on the principle of

Ability to Pay

Willingness to Pay

Benefits Received

All of the above

9. Primary Deficit means

Fiscal deficit - interest

Revenue deficit - interest payments

Fiscal deficit + Revenue deficit

Budgetary deficit

10. Sound Tax Policy is devised mainly on the basis of

High income elasticity

High price elasticity

Elastic tax base

Maximum Tax Revenue