Business Economics 4 MCQ Collection (Semester 4 Part 2)

Business Economics IV

Business Economics IV

Business Economics 4 Second Year B.Com Sem 4 MCQ Collection

01) The Law of Increasing Public Activity was developed by----

  1. Richard Musgrave
  2. Hugh Dalton
  3. Adolf Wagnor
  4. Alan T.Peacock

Answer: Adolf Wagnor

02) According to Wiseman-Peacock Hypothesis,public expenditure increases in----

  1. step-like manner
  2. a smoothe manner
  3. a continuous manner
  4. a cyclical manner

Answer: step-like manner

03) After war, people',s tax tolerance level------

  1. Reduces
  2. Remains the same
  3. Becomes zero
  4. Increases

Answer: increases

04) Goods that are provided by both the public and the private sectors are known as-------

  1. Public goods
  2. Merit goods
  3. Social goods
  4. Demerit goods

Answer: Merit goods

05) The protection by the stae of the individual against economic hazards is reffered to as-----

  1. Social insurance
  2. Private insurance
  3. General insurance
  4. Special insurance

Answer: Social insurance

06) Which of the following programmes protect the people's right to work?

  1. Public Provident Fund
  2. Atal Pension Yojana
  4. Jan Dhan Yojana

Answer: MNREGA

07) Which of the following programmes will provide cashless treatment to petients?

  1. Atal Pension Yojana
  2. Ayushman Bharat
  3. Public Provident Fund

Answer: Ayushman Bharat

08) A dead weight debt is----

  1. Self liquidating
  2. Unproductive
  3. Increases productive efficiency
  4. Not burdensome to the economy

Answer: Unproductive

09) Burden of external debt affecting production and resource allocation is termed as---

  1. Direct money burden
  2. Direct real burden
  3. Indirect money and  real burden
  4. Direct investment burden

Answer: Indirect money and  real burden

10) The ability of a government to sustain its current spending ,tax and other policies is termed as--------

  1. Economic sustainability
  2. Growth sustainability
  3. Fiscal sustainability
  4. Monetary sustainability

Answer: Fiscal sustainability

11) Fiscal policy does not directly deal with ------

  1. Taxation
  2. Public debt
  3. Money supply
  4. Public exependiture

Answer: Money supply

12) Which of the following is not a characteristic of a tax?

  1. Has quid-pro-quo
  2. Is a compulsory payment
  3. is not imposed as penalty
  4. involves sacrifice on part of the payer

Answer: Has quid-pro-quo

13) Which of the following does not form the basis of sound finance?

  1. Say's Law
  2. Assumption of full employment
  3. Ricardian Equivalance Theorem
  4. Unbalanced Budget

Answer: Unbalanced Budget

14) The origin of the term functional finance is attributed  to-----

  1. J.M.Keynes
  2. A.C.Pigou
  3. A.P.Learner
  4. Richard Musgrave

Answer: A.P.Learner

15) Automatic stabilisers will be ineffective in case of which of the following situations?

  1. Recession
  2. Cost-push inflation
  3. Demand-pull inflation
  4. Deflation

Answer: cost-push inflation

16) Which of the following refers to the excess of revenue expenditure over revenue receipts?

  1. Revenue deficit
  2. Budgetary deficit
  3. Fiscal deficit
  4. Primary deficit

Answer: Revenue deficit

17) Which of the following deficit is a more comprehensive measure of budgetary imbalances?

  1. Revenue deficit
  2. Budgetary deficit
  3. Fiscal deficit
  4. Primary deficit

Answer: Fiscal deficit

18) Primary deficit is obtained by deducting interest payment from the-----

  1. Fiscal deficit
  2. Revenue deficit
  3. Budgetary deficit
  4. Monetised deficit

Answer: Fiscal deficit

19) Which of the following serves as a tool for fiscal management and accountability?

  1. Monetary policy
  2. Budgetary deficit
  3. Foreign policy
  4. Industrial policy

Answer: Budgetary deficit

20) In which of the budget the existing programmes or activities may not be automatically funded?

  1. Zero based budget
  2. Traditional budget
  3. Executive budget
  4. Programme budget

Answer: Zero based budget

21) Which of the following is not an objective of the budget?

  1. Generation of employment
  2. Reduction of poverty
  3. Manipulating the rate of interest
  4. Economic growth

Answer: Manipulating the rate of interest

22) Finance Commission is appointed every------- years.

  1. Five
  2. Ten
  3. Two
  4. Seven

Answer: Five

23) The Chairman of the 14th Finance Commission was-----

  1. Dr.Raghuram Rajan
  2. Dr.C.Rangrajan
  3. Dr.Y.V.Reddy
  4. Dr.Bimal Jalan

Answer: Dr.Y.V.Reddy

24) In case of forward shifting of a tax burden,it lies on------

  1. Producer
  2. Consumer
  3. Worker
  4. Government

Answer: Consumer

25) PP curve is illustrated to explain ----

  1. Economic efficiency
  2. Public goods
  3. Government policy
  4. Private goods

Answer: Economic efficiency

26) Goods are characterised by two important features,i.e.non-consumpotion in rival and consumption & non-excludability.

  1. Public goods
  2. Private goods
  3. Merit goods
  4. Agricultural goods

Answer: Public goods

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