Fiscal System of India Set 3
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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Fiscal System of India Set 3
Q1 | Among Indian Economists who had done pioneering work on National Income ?
- P. N. Dhar
- Jagdish Bhagwati
- V. K. R.V. Rao
- Prof. Shenoi
Q2 | Who was the chairman of National Income Committee?
- P. C. Mahalanobis
- V.K.R.V. Rao
- D.R. Gadgil
- A.M. Khusro
Q3 | The recommendations of the Finance Commission are:
- binding on the government
- not binding on the government
- generally accepted as a matter of convention
- accepted or rejected by the government according to its convenience
Q4 | After 1991, the Central Government implemented various far-reaching reforms in thearea of taxation. This was based on the recommendations of the: [CDS 1999]
- Wanchoo Committee
- Rajah Chelliah Committee
- Raj Committee
- Narsimhan Committee
Q5 | To know whether the rich are getting richer and the poor getting poorer, it is necessaryto compare; [IAS 1994]
- the availability of foodgrains among two sets of people, one rich and the other poor, over different periods of time
- the distribution of income of an identical set of income recipients in different periods of time
- the wholesale price index over different periods of time for different regions
- the distribution of income of different sets of income recipients at a point of time
Q6 | National income of India is compiled by:
- Finance Commission
- Indian Statistical Institute
- National Development Council
- Central Statistical Organisation
Q7 | Which one of the following is the correct statements?Service tax is a/an [IAS 2006]
- direct tax levied by the Central Government
- indirect tax levied by the Central Government
- direct tax levied by the State Government
- indirect tax levied by the State Government
Q8 | If saving exceeds investment, the national income will :
- fall
- rise
- fluctuate
- remain constant
Q9 | Which of the following are the main causes of slow rate of growth of per capita incomein India? [IAS 1993] 1. High capital-output ratio 2. High rate of growth of population 3. High rate of capital formation 4. High level of fiscal deficits
- 1 and 2
- 2, 3 and 4
- 1 and 4
- 1, 2, and 4
Q10 | Which of the following is not part of state tax?
- Land revenue
- Entertainment tax
- Sales and purchase of newspapers
- Stamp duty other than financial documents
Q11 | VAT is alternate of:
- state tax
- central tax
- both (a) and (b)
- neither (a) nor (b)
Q12 | Which of the following is not a direct tax?
- Tax on income
- Tax on wealth
- Tax on expenditure
- Tax on entertainment
Q13 | In economic terms, which of the following factors determine the 'Individual's demand'of a product/commodity? [RBI Grade B Officer 2011] A. Price of a commodity B. Income of the individual C. Utility and quality of a commodity
- Only A
- Only B
- Only C
- All A, B, & C
Q14 | Share of Direct tax in post economic reform is:
- increasing
- decreasing
- can't say anything
- fluctuating
Q15 | Many times we see in financial journals/bulletins a term M3. What is M3? [RBI GradeB Officer 2011]
- Currency in circulation on a particular day
- Total value of foreign exchange on a particular day
- Total value of export credit on a given date
- None of these
Q16 | Consider the following statements:In India, stamp duties on financial transactions are: 1. levied and collected by the State Government 2. appropriated by the Union Government Which of the statements is/are correct?
- Only 1
- Only 2
- Both 1 and 2
- Neither 1 nor 2
Q17 | Tax collection of Central govt. was lowest as compare to G.D.P., in which of thefollowing year?
- 1999-2000
- 2000-2001
- 2001-2002
- 2002-2003
Q18 | In India GDP is higher than GNP because country's:
- import > export
- capital inflow > capital outflow
- net factor income is negative
- Govt. expenditure is more than it's income
Q19 | In India, the service tax was first introduced in the year: [CDS 2001]
- 1998
- 1996
- 1994
- 1992
Q20 | In gross domestic saving by sector of origin, the four sectors in order of importance are:
- Household Sector, Public Enterprises, Government Sector, Corporate Sector
- Household Sector, Corporate Sector, Government Sector, Public Enterprises
- Government Sector, Household Sector, Public Enterprises, Corporate Sector
- Household Sector, Government Sector, Public Enterprises, Corporate Sector
Q21 | The main reason for low growth rate in India, inspite of high rate of savings and capital formation is: [IAS 1995]
- high birth rate
- low level of foreign aid
- low capital/output ratio
- high capital/output ratio
Q22 | Which among the following sectors received the largest Central plan outlay in the last few Central Government annual budgets? [CDS 2002]
- Energy
- Agriculture and allied activities
- Social Services
- Communication
Q23 | After the initiation of economic reforms in 1991-92 the percentage share of: [CDS 1999]
- direct taxes increased and that of indirect taxes decreased in gross tax revenue
- Both direct and indirect taxes increased in gross tax revenue
- both direct and indirect taxes decreased in gross tax revenue
- direct taxes decreased and that of indirect taxes increased in gross tax revenue
Q24 | Which of the following statements about indirect taxes in India is/are true? 1. Yield from indirect taxes is much more than that from direct taxes 2. Indirect taxes have grown faster than direct taxes since independence 3. Indirect taxes are ultimately paid for by persons who do not actually pay the taxes to the Government 4. Increase in indirect taxes is a welcome feature in a developing country
- 1, 2 and 4
- 1 and 2
- 2 only
- 1, 2 and 3
Q25 | Which of the following is not an indirect tax?
- Land revenue
- Customs duties
- Entertainment tax
- Sales tax