Business Economics IV
Business Economics 4 Second Year B.Com Sem 4 MCQ Collection
01) It is difficult to assess the outcome of financial activities of the government because-------
- Social benefits and costs are subjects in nature
- The budgetary activities are not open to scrutiny.
- Budgets are may be surplus or deficit
- Budgets may be balanced
Answer: Social benefits and costs are subjects in nature
03) Fiscal Deficit=--------
- Total Expenditure-(Revenue Receipts +Non borrowing Capital Recipts)
- Total Expenditure-Revenue Receipts
- Total Expenditure-Total Receipt
- Total Expenditure-Capital Receipts
Answer: Total Expenditure-(Revenue Receipts +Non borrowing Capital Recipts)
04) Revenue expenditure do not include-------.
- Interest payment
- Subsidies
- Debt repayment
- Expenditure in civil administration
Answer: Debt repayment
05) Which is not the canon of public expenditure--------
- Surplus
- Sanction
- Economy
- Convenience
Answer: Convenience
06) Under the GST system, the tax levied on all inetr-state supplies of goods and services is known as------
- CGST
- SGST
- VAT
- IGST
Answer: IGST
07) Which of the following is concerned with devision of economic responsibilities between the Central and State Governments in India?
- Finance Commission
- Planning Commission
- NITI Aayog
- RBI
Answer: Finance Commission
08) The Union Budget gives details for ---- consecutive years.
- one
- two
- three
- Four
Answer: three
09) An example of an externality is the impact of-------
- Bad crops on the income of farmers
- A tax is rate to purchase goods and services
- Pollution from a factory on the health of people in the area
- Irease in the number of health care centers
Answer: Pollution from a factory on the health of people in the area
10) Left to themselves,markets-----
- Will always produce socially acceptable outcome
- Will always fail allocate efficiantly
- May produce socially unacceptable outcomes
- Will always correct socially acceptable
Answer: May produce socially unacceptable outcomes
11) The classical advocacy of balanced budget is based on which of the folloing benefits?
- Possibility of market failures
- Laissez faire capitalism
- Redistribution of income
- Social justice objective of fiscal policy
Answer: Laissez faire capitalism
12) FRBM Act became effective from ---------.
- June 5,2004
- July 5,2004
- June 5,2005
- July 5,2005
Answer: July 5,2004
13) According to Constitution of India, there is a -------system of governmemt.
- one-tier
- two-tier
- three-tier
- four-tier
Answer: three-tier
14) The key issue of Fiscal Federation is------
- Revenue assignment
- Revenue and expenditure assignment
- Expenditure assignment
- investment assignment
Answer: Revenue and expenditure assignment
15) Sound Finance follow------.
- Balanced Budget
- Unbalanced Budget
- Unified Budget
- Multiple Budget
Answer: Balanced Budget
16) Primary deficit is Fiscal Deficit less-------
- Interest receipts
- Defence expenditure
- Subsidies
- Defence expenditure
Answer: Interest payments
17) Jack Wiseman and Alan T. Peacock carried out study on-----
- Public borrowing
- Taxation
- Public expenditure
- Deficit financing
Answer: Public expenditure
18) Public expenditure should be incurred to reduce-------.
- Production
- Employment
- Income Inequality
- Deficit financing
Answer: Income Inequality
19) GST has replaced a variety of------
- Direct Taxes
- Indirect Taxes
- Fees
- Fines
Answer: Indirect Taxes
20) Special levy means------.
- Tax on all people
- Charges for specific benefits
- Gift Tax
- Tax on some people
Answer: Charges for specific benefits
21) Direct taxes are-----.
- Unproductive
- Elastic
- Contributed by all
- Inelastic
Answer: Elastic
21) When the size of the budget is optimum,then-------------.
- MSS<MSB
- MSS>MSB
- MSS=MSB
- MSS=MSE
Answer: MSS=MSB
22) Taxes are subject to increasing----------.
- Marginal Social Sacrifice
- Marginal Social Benefit
- Marginal Society Benefit
- Marginal Society Sacrifice
Answer: Marginal Social Sacrifice
23) Tax is a------.
- Compulsory payment
- Optional payment
- Political payment
- Cultural phenomenon
Answer: Compulsory payment
24) Producton Possibility curve is illustrated to explain-----------.
- economic efficiency
- government role
- Government policy
- political efficiency
Answer: economic efficiency
25) Public Finance is a---------.
- Social science
- fiscal science
- Political science
- Cultural science
Answer: fiscal science
26) which of the following programmes aims at Financial Inclusion---------.
- Public Provident Fund
- Mahatma Gandhi National Rural Employment Gurantee Act
- Atal Pension Yojana
- Pradhan Mantri Jan Dhan Yojana
Answer: Pradhan Mantri Jan Dhan Yojana
27) In which of the following programmes is life insurance linked with savings bank account?
- Pradhan Mantri Jan Dhan Yojana
- Atal Pension Yojana
- Public Provident Fund
- Pradhan Mantri Jeevan Jyoti Bima Yojana
Answer: Pradhan Mantri Jeevan Jyoti Bima Yojana