Business Economics 4 MCQ Collection (Semester 4 Part 3)

Business Economics IV

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-------

  1. Social benefits and costs are subjects in nature
  2. The budgetary activities are not open to scrutiny.
  3. Budgets are may be surplus or deficit
  4. Budgets may be balanced

Answer: Social benefits and costs are subjects in nature

03) Fiscal Deficit=--------

  1. Total Expenditure-(Revenue Receipts +Non borrowing Capital Recipts)
  2. Total Expenditure-Revenue Receipts
  3. Total Expenditure-Total Receipt
  4. Total Expenditure-Capital Receipts

Answer: Total Expenditure-(Revenue Receipts +Non borrowing Capital Recipts)

04) Revenue expenditure do not include-------.

  1. Interest payment
  2. Subsidies
  3. Debt repayment
  4. Expenditure in civil administration

Answer: Debt repayment

05) Which is not the canon of public expenditure--------

  1. Surplus
  2. Sanction
  3. Economy
  4. Convenience

Answer: Convenience

06) Under the GST system, the tax levied on all inetr-state supplies of goods and services is known as------

  1. CGST
  2. SGST
  3. VAT
  4. IGST

Answer: IGST

07) Which of the following is concerned with devision of economic responsibilities between the Central and State Governments in India?

  1. Finance Commission
  2. Planning Commission
  3. NITI Aayog
  4. RBI

Answer: Finance Commission

08) The Union Budget gives details for ---- consecutive years.

  1. one
  2. two
  3. three
  4. Four

Answer: three

09) An example of an externality is the impact of-------

  1. Bad crops on the income of farmers
  2. A tax is rate to purchase goods and services
  3. Pollution from a factory on the health of people in the area
  4. 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-----

  1. Will always produce socially acceptable outcome
  2. Will always fail allocate efficiantly
  3. May produce socially unacceptable outcomes
  4. 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?

  1. Possibility of market failures
  2. Laissez faire capitalism
  3. Redistribution of income
  4. Social justice objective of fiscal policy

Answer: Laissez faire capitalism

12) FRBM Act became effective from ---------.

  1. June 5,2004
  2. July 5,2004
  3. June 5,2005
  4. July 5,2005

Answer: July 5,2004

13) According to Constitution of India, there is a -------system of governmemt.

  1. one-tier
  2. two-tier
  3. three-tier
  4. four-tier

Answer: three-tier

14) The key issue of Fiscal Federation is------

  1. Revenue assignment
  2. Revenue and expenditure assignment
  3. Expenditure assignment
  4. investment assignment

Answer: Revenue and expenditure assignment

15) Sound Finance follow------.

  1. Balanced Budget
  2. Unbalanced Budget
  3. Unified Budget
  4. Multiple Budget

Answer: Balanced Budget

16) Primary deficit is Fiscal Deficit less-------

  1. Interest receipts
  2. Defence expenditure
  3. Subsidies
  4. Defence expenditure

Answer: Interest payments

17) Jack Wiseman and Alan T. Peacock carried out study on-----

  1. Public borrowing
  2. Taxation
  3. Public expenditure
  4. Deficit financing

Answer: Public expenditure

18) Public expenditure should be incurred to reduce-------.

  1. Production
  2. Employment
  3. Income Inequality
  4. Deficit financing

Answer: Income Inequality

19) GST has replaced a variety of------

  1. Direct Taxes
  2. Indirect Taxes
  3. Fees
  4. Fines

Answer: Indirect Taxes

20) Special levy means------.

  1. Tax on all people
  2. Charges for specific benefits
  3. Gift Tax
  4. Tax on some people

Answer: Charges for specific benefits

21) Direct taxes are-----.

  1. Unproductive
  2. Elastic
  3. Contributed by all
  4. Inelastic

Answer: Elastic

21) When the size of the budget is optimum,then-------------.

  1. MSS<MSB
  2. MSS>MSB
  3. MSS=MSB
  4. MSS=MSE

Answer: MSS=MSB

22) Taxes are subject to increasing----------.

  1. Marginal Social Sacrifice
  2. Marginal Social Benefit
  3. Marginal Society Benefit
  4. Marginal Society Sacrifice

Answer: Marginal Social Sacrifice

23) Tax is a------.

  1. Compulsory payment
  2. Optional payment
  3. Political payment
  4. Cultural phenomenon

Answer: Compulsory payment

24) Producton Possibility curve is illustrated to explain-----------.

  1. economic efficiency
  2. government role
  3. Government policy
  4. political efficiency

Answer: economic efficiency

25) Public Finance is a---------.

  1. Social science
  2. fiscal science
  3. Political science
  4. Cultural science

Answer: fiscal science

26) which of the following programmes aims at Financial Inclusion---------.

  1. Public Provident Fund
  2. Mahatma Gandhi National Rural Employment Gurantee Act
  3. Atal Pension Yojana
  4. 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?

  1. Pradhan Mantri Jan Dhan Yojana
  2. Atal Pension Yojana
  3. Public Provident Fund
  4. Pradhan Mantri Jeevan Jyoti Bima Yojana

Answer: Pradhan Mantri Jeevan Jyoti Bima Yojana

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