Indian Economy MCQ Question Answer Paper Set 7

1)Interest on public debt is a part of :

a) Transfer payments by the enterprises

b) Transfer payments by the Government

c) National Income

d)Interest payment by house-hold

ans: b

2) If the tax rate increases with the higher level of income , it shall be called

a) Proportional tax

b) Progressive tax

c) Lump Sum tax

d) Regressive tax

ans: b

3) Which one of the following is NOT the source of revenue of Central Government?

a) Income Tax

b) Corporate Tax

c) Agriculture Income Tax

d) Excise Tax

ans: c

4) Which of the following taxes/ duties is NOT under the jurisdiction of the Central Government?

a) Land Revenue

b) Personal Income Tax

c) Corporate Income Tax

d) Custom Duties

ans: a

5) The tax of import and export is known as :

a) Income tax

b) Trade tax

c) Custom tax

d) Excise duty

ans: c

6) ECGC is related to

a) Export Promotion

b) Export financing and insurance

c) Export quality certification

d) Export statistics publication

ans: b

7) The World Trade organization (WHO) was formed in :

a) 1991

b) 1995

c) 1997

d) 1999

ans: b

8) What is the purpose of the India Brand Equality Fund?

a) To promote in bound tourism

b) To make ‘Made in India ‘ a lebel of quality

c)To organize trade fairs

d) To provide venture capital to IT sector

ans: b

9) The capital of IFM is made up by  contribution of the :

a) Credit

b) Deficit financing

c) Member Nations

d) Borrowings

ans: c

10) S.D.R. stands for

a) Special Drawing Rights

b) State Drawing Rights

c) Special Dollar Rights

d) Specific Dollar Rights

ans: a

11) The term ‘Paper Gold’ means

a) Special Drawing Rights (SDR) of the IMF

b) Special accommodation facility of the World Bank

c) Currencies still on Gold standard

d) Deficit Financing

ans: a

12) The excess of price _ a person is to pay rather than forego the consumption of the commodity is called

a) Price

b) Profit

c) Producer’s surplus

d) Consumer’s surplus

ans: c

13) ‘ Economics is what ist ought to be’ . This statement refer to :

a) Normative Economics

b) Positive Economics

c) Monetary Economics

d) Fiscal Economics

ans: a

14) Who among the following is NOT a classical economist?

a) David Ricardo

b) John Stuart Mill

c) Thomas Malthus

d) John Maynard Keynes

ans: d

15) Who propounded the ‘ market law’ ?

a) Adam smith

b) J. B. say

c) T. R. Malthus

d) David Ricardo

ans: b

16) Who says : “ The propensity to consume is stable in the short run “ ?

a) Keynes

b) Hicks

c) Arrow

d) Stiglitz

ans: a

17) New firms are barred from entering the market in :

a) Perfect competition

b) Oligopoly

c) Monopolistic competition

d) Monopoly

ans: d

18) What is needed for creating demand?

a) Production

b) Price

c) Income

d) Import

ans: b

19) Nobel Prize in which field is NOT paid out of the endowment set up by Dr. Alfred Nobel ?

a) Peace

b) Medicine

c) Chemistry

d) Economics

ans: d

20) One astronomical unit is the average distance between

a) The Earth and the Sun

b) The Pluto and the Sun

c) The Jupiter and the Sun

d) The Earth and the Moon

ans: a

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