This quiz works best with JavaScript enabled. Home > Indian Economy > Planning > Fiscal System Of India – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal System Of India Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How does the consumer benefit with VAT? [CPO SI 2003] A) It removes tax on tax and thus reduces price-rise. B) It reduces the cost of production. C) With the abolition of the sales tax. D) Due to the exemption of small Businesses from the tax within certain limits prescribed by the State. Show Answer Correct Answer: A) It removes tax on tax and thus reduces price-rise. 2. National income is the same as: A) Net Domestic Product at market price. B) Net Domestic Product at cost factor. C) Net National Product at market price. D) Net National Product at factor cost. Show Answer Correct Answer: D) Net National Product at factor cost. 3. A budgetary deficit means: A) Total expenditure is more than total revenue. B) Current expenditure is more than current revenue. C) Capital expenditure is more than capital revenue. D) Total expenditure is more than current revenue. Show Answer Correct Answer: A) Total expenditure is more than total revenue. 4. The prices at which the government purchases food grains for maintaining the public distribution system and for building up buffer stocks are known as : A) Minimum Support Prices. B) Procurement Prices. C) Issue Prices. D) Ceiling Prices. Show Answer Correct Answer: B) Procurement Prices. 5. Fiscal Policy is controlled by ..... A) The Government. B) The Federal Reserve System. C) The states. D) The Department of Commerce. Show Answer Correct Answer: A) The Government. 6. A Multinational is: [CDS 1991] A) A company operating in several countries. B) A company having shareholders from more than one country. C) A company which does charitable work in poor countries. D) A company that operates only in those countries that do not have import restrictions. Show Answer Correct Answer: A) A company operating in several countries. 7. Which of the following taxes is not levied by the Union Government? A) Wealth Tax. B) Excise Duty. C) Profession Tax. D) Income Tax. Show Answer Correct Answer: C) Profession Tax. 8. An example of a contractionary fiscal policy would be if: A) Taxes were cut. B) The government bailed out GM. C) The Fed decrease the fed funds rate. D) Taxes were increased. Show Answer Correct Answer: D) Taxes were increased. 9. Which of the following is not a limitation of Fiscal policy? A) Inflation. B) Defective tax system. C) Instability. D) Proper income distribution. Show Answer Correct Answer: D) Proper income distribution. 10. Under increasing returns the supply curve is [SSC (10+2) 2010] A) Positively sloped from left to right. B) Negatively sloped from left to right. C) Parallel to the quantity-axis. D) Parallel to the price-axis. Show Answer Correct Answer: A) Positively sloped from left to right. 11. Which of the following is an indirect tax? A) Corporation Tax. B) Excise Duty. C) Wealth Tax. D) Capital Gains Tax. Show Answer Correct Answer: B) Excise Duty. 12. Rate of growth of an economy is measured in terms of: A) Per capita income. B) Industrial development. C) Number of people who have been lifted above the poverty line. D) National income. Show Answer Correct Answer: D) National income. 13. The National Income is more at current prices than at constant prices because: [CDS 1992] A) Increase in price is equal to increase in production. B) Increase in price is more than production. C) Increase in production is more than increase in price. D) Of decrease in production only. Show Answer Correct Answer: C) Increase in production is more than increase in price. 14. Taxation and the government's expenditure policy are dealt under the : A) Trade policy. B) Budget. C) Fiscal policy. D) Monetary policy. Show Answer Correct Answer: C) Fiscal policy. 15. Temporary tax levied to obtain additional revenue is called: A) Cess. B) Rate. C) Fee. D) Surcharge. Show Answer Correct Answer: D) Surcharge. 16. An example of expansionary fiscal policy would be A) Cutting taxes. B) Cutting government spending. C) Cutting production of consumer goods. D) Cutting prices of consumer goods. Show Answer Correct Answer: A) Cutting taxes. 17. Grants or advances made by the House to enable the government to carry on until the voting of the demands for grants and passing of the General Appropriation Bill is called: A) Vote on account. B) Complementary budget. C) Supplementary budget. D) Contingency budget. Show Answer Correct Answer: A) Vote on account. 18. What is the impact on the "Social overhead capital requirements" of an economy, if the population increases? A) FALL. B) UNCHANGED. C) INCREASE. D) FALL DRASTICALLY. Show Answer Correct Answer: C) INCREASE. 19. The budget broadly comprises: (i) revenue budget, and (li) capital budget. Which of the following item or items is/are not covered under the revenue budget? I. Different proceeds of taxes and other duties levied by the government II. Interest and dividend on investments made by the government III. Expenditure on running government and various services IV. Market loans raised by the government A) III and IV. B) II and III. C) Only II. D) Only IV. Show Answer Correct Answer: D) Only IV. 20. Which of the following is not an indirect tax? A) Land revenue. B) Customs duties. C) Entertainment tax. D) Sales tax. Show Answer Correct Answer: A) Land revenue. ← PreviousNext →Related QuizzesIndian Economy QuizzesFiscal System Of India Quiz 1Fiscal System Of India Quiz 2Fiscal System Of India Quiz 3Fiscal System Of India Quiz 5Fiscal System Of India Quiz 6Fiscal System Of India Quiz 7Fiscal System Of India Quiz 8Fiscal System Of India Quiz 9Fiscal System Of India Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books