Fiscal System of India Set 5
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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