Business Economics IV
Business Economics 4 Second Year B.Com Sem 4 MCQ Collection
01) The Law of Increasing Public Activity was developed by----
- Richard Musgrave
- Hugh Dalton
- Adolf Wagnor
- Alan T.Peacock
Answer: Adolf Wagnor
02) According to Wiseman-Peacock Hypothesis,public expenditure increases in----
- step-like manner
- a smoothe manner
- a continuous manner
- a cyclical manner
Answer: step-like manner
03) After war, people',s tax tolerance level------
- Reduces
- Remains the same
- Becomes zero
- Increases
Answer: increases
04) Goods that are provided by both the public and the private sectors are known as-------
- Public goods
- Merit goods
- Social goods
- Demerit goods
Answer: Merit goods
05) The protection by the stae of the individual against economic hazards is reffered to as-----
- Social insurance
- Private insurance
- General insurance
- Special insurance
Answer: Social insurance
06) Which of the following programmes protect the people's right to work?
- Public Provident Fund
- Atal Pension Yojana
- MNREGA
- Jan Dhan Yojana
Answer: MNREGA
07) Which of the following programmes will provide cashless treatment to petients?
- Atal Pension Yojana
- Ayushman Bharat
- Public Provident Fund
- MNREGA
Answer: Ayushman Bharat
08) A dead weight debt is----
- Self liquidating
- Unproductive
- Increases productive efficiency
- Not burdensome to the economy
Answer: Unproductive
09) Burden of external debt affecting production and resource allocation is termed as---
- Direct money burden
- Direct real burden
- Indirect money and real burden
- 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--------
- Economic sustainability
- Growth sustainability
- Fiscal sustainability
- Monetary sustainability
Answer: Fiscal sustainability
11) Fiscal policy does not directly deal with ------
- Taxation
- Public debt
- Money supply
- Public exependiture
Answer: Money supply
12) Which of the following is not a characteristic of a tax?
- Has quid-pro-quo
- Is a compulsory payment
- is not imposed as penalty
- 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?
- Say's Law
- Assumption of full employment
- Ricardian Equivalance Theorem
- Unbalanced Budget
Answer: Unbalanced Budget
14) The origin of the term functional finance is attributed to-----
- J.M.Keynes
- A.C.Pigou
- A.P.Learner
- Richard Musgrave
Answer: A.P.Learner
15) Automatic stabilisers will be ineffective in case of which of the following situations?
- Recession
- Cost-push inflation
- Demand-pull inflation
- Deflation
Answer: cost-push inflation
16) Which of the following refers to the excess of revenue expenditure over revenue receipts?
- Revenue deficit
- Budgetary deficit
- Fiscal deficit
- Primary deficit
Answer: Revenue deficit
17) Which of the following deficit is a more comprehensive measure of budgetary imbalances?
- Revenue deficit
- Budgetary deficit
- Fiscal deficit
- Primary deficit
Answer: Fiscal deficit
18) Primary deficit is obtained by deducting interest payment from the-----
- Fiscal deficit
- Revenue deficit
- Budgetary deficit
- Monetised deficit
Answer: Fiscal deficit
19) Which of the following serves as a tool for fiscal management and accountability?
- Monetary policy
- Budgetary deficit
- Foreign policy
- Industrial policy
Answer: Budgetary deficit
20) In which of the budget the existing programmes or activities may not be automatically funded?
- Zero based budget
- Traditional budget
- Executive budget
- Programme budget
Answer: Zero based budget
21) Which of the following is not an objective of the budget?
- Generation of employment
- Reduction of poverty
- Manipulating the rate of interest
- Economic growth
Answer: Manipulating the rate of interest
22) Finance Commission is appointed every------- years.
- Five
- Ten
- Two
- Seven
Answer: Five
23) The Chairman of the 14th Finance Commission was-----
- Dr.Raghuram Rajan
- Dr.C.Rangrajan
- Dr.Y.V.Reddy
- Dr.Bimal Jalan
Answer: Dr.Y.V.Reddy
24) In case of forward shifting of a tax burden,it lies on------
- Producer
- Consumer
- Worker
- Government
Answer: Consumer
25) PP curve is illustrated to explain ----
- Economic efficiency
- Public goods
- Government policy
- Private goods
Answer: Economic efficiency
26) Goods are characterised by two important features,i.e.non-consumpotion in rival and consumption & non-excludability.
- Public goods
- Private goods
- Merit goods
- Agricultural goods
Answer: Public goods