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This set of General Economics 2 Multiple Choice Questions & Answers (MCQs) focuses on General Economics 2 Set 2

Q1 | Price revenue is popularly known as:
  • Market borrowing
  • Government borrowing
  • Commercial revenue
  • Surplus of public undertakings
Q2 | Who propounded the doctrine of sound finance:
  • German Historical economists
  • Classical Economists
  • Neo‐ classical economists
  • None of the above
Q3 | The basic principle of Public Finance is:
  • Maximum social advantage
  • Welfare of the government
  • Welfare of the individual
  • All the above.
Q4 | A tax is:
  • Voluntary contribution with direct benefit
  • Compulsory contribution with indirect benefit.
  • Compulsory Contribution with no direct benefit.
  • None of the above.
Q5 | Which of the following are direct taxes:
  • Gift tax
  • Corporation tax
  • Income tax
  • All of the above.
Q6 | From the following which is not a direct tax:
  • Tax income
  • Tax on wealth
  • Tax on expenditure
  • Tax on entertainment
Q7 | The name of indirect tax is:
  • Sales tax
  • Income tax
  • Corporation tax
  • Wealth tax.
Q8 | Taxes raised are credited into:
  • Public Accounts
  • Consolidated Fund
  • Contingency Fund
  • Private Accounts.
Q9 | All taxes come under:
  • Capital receipts
  • Public debt
  • Revenue receipts
  • Both (b) and (c).
Q10 | Who favoured an unbalanced budget:
  • German historical economists
  • Keynesian economists
  • Neo‐ classical economists
  • All of the above.
Q11 | The concept of functional finance was first developed by:
  • Hugh Dalton
  • Taussig
  • A.P. Lerner
  • None the above.
Q12 | Deficit budgeting should be resorted to at a time of:
  • Inflation
  • Depression
  • Boom
Q13 | Fiscal policy is related to:
  • Public revenue and expenditure
  • Exports and Imports
  • Issues and circulation of currencies.
  • Money supply.
Q14 | “The Law of Increase of state Activities” was explained by:
  • Dalton
  • AC.Pigou
  • Adolph Wagner
  • None of the above
Q15 | The Critical limit Hypothesis was explained by:
  • Wiseman
  • A. Wagner
  • Colin Clark
  • None of the above
Q16 | Public debt implies loans raised by a government:
  • Within the country
  • Outside the country
  • Both (a) and (b)
  • None of the above
Q17 | Who is the chairman of the first finance commission?
  • KC.Neogi
  • AK.Chanda
  • K.Santhanam
  • None of the above
Q18 | Loans on projects yielding income is:
  • Productive
  • unproductive
  • Short term
  • None of the above
Q19 | When income of the government is greater than its expenditure, the budget is:
  • balanced
  • surplus
  • deficit
  • none of the above
Q20 | Chairman of the Thirteenth Finance Commission is:
  • AM.Khusro
  • KC.Pant
  • Vijay Khelkar
  • C.Rangarajan
Q21 | Chairman of the Finance Commission is appointed by:
  • Prime Minister
  • President
  • Chief Justice
  • None of the above
Q22 | When income and expenditure of the government are equal, the budget is:
  • deficit
  • surplus
  • balanced
  • none of the above
Q23 | Budget is presented in the Parliament as per:
  • Article 280
  • Article 112
  • Article 202
  • None of the above
Q24 | The largest contributing sector to GDP at the time of independence in India is:
  • Agriculture
  • Industry
  • Service
  • None
Q25 | The contribution of Primary sector to GDP in 2011‐12 is:
  • 13.9
  • 14.5
  • 56.5
  • 29.1