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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Fiscal System of India Set 5

Q1 | A budgetary deficit means:
  • total expenditure is more than total revenue
  • current expenditure is more than current revenue
  • capital expenditure is more than capital revenue
  • total expenditure is more than current revenue
Q2 | Fiscal deficit in the budget means: [CDS 1999]
  • Revenue deficit plus the net borrowings of the government
  • Budgetary deficit plus the net borrowings of the government
  • Capital deficit plus revenue deficit
  • Primary deficit minus capital deficit
Q3 | Fiscal deficit in the Union Budget means: [IAS 1994]
  • the difference between current expenditure and current revenue
  • net increase in Union Government's borrowings from the Reserve Bank of India
  • the sum of budgetary deficit and net increase in internal and external borrowings
  • the sum of monetised deficit and budgetary deficit
Q4 | Among the structural changes which of the following is not wholly welcome?
  • Increase in the share of construction in the GNP
  • Relative contribution of agriculture to our GNP is declining
  • Marked improvement in the contribution of manufacturing to the GNP
  • Substantial increase in the percentage contribution of public administration and defence to GDP
Q5 | Net factor income from abroad added to GDP gives:
  • GNP
  • NNP
  • NDP
  • per capita income
Q6 | Gross National Income is always more than Net National Income because it includes:
  • foreign income
  • capital consumption allowance
  • indirect taxes
  • direct taxes
Q7 | Gross National Product at market prices is defined as : [CPO AC 2003]
  • the market value of all final goods and services produced in an economy taking into account net factor income from abroad
  • the market value of all final goods and services produced in an economy
  • the market value of all final goods and services produced in an economy plus indirect taxes
  • the market value of all final goods and services produced in an economy plus indirect taxes minus subsidies
Q8 | National income refers to: [CPO SI 2002]
  • money value of goods 'and services produced in a country during a year.
  • money value of stocks and shares of a country during a year.
  • money value of capital goods produced by a country during a year.
  • money value of consumer goods produced by a country during a year.
Q9 | National income calculated at current prices in India has shown a tendency to rise at afaster rate than national income at constant prices. This is because:
  • India's population has been rising fast
  • General price level in the economy has been rising rapidly
  • Statistically manipulations are employed by the Planning
  • Base year chosen is an abnormal year
Q10 | The measure of a worker's real wage is : [CPO SI 2002]
  • the change in his productivity over a given time
  • his earning after deduction at source
  • his daily earnings
  • the purchasing power of his earnings
Q11 | Real national income denotes:
  • national income at constant prices
  • per capita income
  • national income at current prices
  • net factor income
Q12 | Under VAT, how many slabs are there?
  • 3
  • 4
  • 2
  • 5
Q13 | Which one of the following forms the largest share of deficit in Govt. of India budget? [UP PCS 2002]
  • Primary deficit
  • Fiscal deficit
  • Revenue deficit
  • Budgetary deficit
Q14 | Gross National Product is less than Gross Domestic Product depending upon whether:
  • indirect taxes are more than subsidies
  • depreciation is included or not
  • net factor income from abroad is positive or negative
  • indirect taxes are less than subsides
Q15 | One of the following leads to underestimation of national income in India: 1. Inflation 2. Devaluation 3. Non-Monetary consumption 4. Large unorganized sector Choose correct answer from:
  • 1, 2, 3 and 4
  • 1, 3 and 4
  • 3 and 4
  • 2, 3 and 4
Q16 | Which of the following schemes was intended to tap the black money?
  • SBI Deposit Scheme
  • UTI Bonds
  • Long term Operations Scheme
  • India Development Bonds
Q17 | According to the law of demand, when:
  • price increases demand decreases
  • price decreases demand decreases
  • price increases demand increases
  • price decreases demand does not change
Q18 | Which one of the following situations makes a firm most efficient? [CDS 2002]
  • Falling average costs
  • Rising average costs
  • Constant average costs
  • Lowest average costs
Q19 | National Income total reveals: 1. Production side of the economy 2. Distribution side of the economy 3. Expenditure side of the economy Choose your answer from
  • 1 only
  • 2 only
  • 1, 2 and 3
  • 3 only
Q20 | Octroi is levied and collected by:
  • Centre
  • State Government
  • local bodies
  • all the above
Q21 | What is meant by 'Underwriting', the term frequently used in financial sector? [Punjab & Sindh Bank 2011]
  • Under valuation of the assets.
  • The Act of taking on a risk for a fee.
  • Giving a Guarantee that a loan will not become a bad loan.
  • The act of permission to float an IPO.
Q22 | What is a fiscal deficit? [Punjab & Sindh Bank 2011]
  • It is a gap between the values of the exports and imports
  • It is a gap between exports and imports minus external borrowings
  • It is a gap between total expenditure and total receipts of the Govt.
  • It is a gap between total receipts minus External Borrowing
Q23 | Which one of the following organizations/agencies' are involved in drafting the UnionBudget of India? [Punjab & Sindh Bank 2011]
  • The Planning Commission only
  • The Comptroller and Auditor General only
  • Administrative Ministries only
  • (1) & (2) only
Q24 | The highest weight in the revised Whole Sale Price Index, implemented from September 2010 is given to which of the following item? [Corporation Bank PO 2011]
  • Fuel
  • Food items
  • Manufactured items
  • Primary Articles
Q25 | Which one of the following is the updated base for Wholesale Price Index (WPI) ? [Corporation Bank PO 2011]
  • 2002-2003
  • 2003-2004
  • 2004-2005
  • 2005-2006