SECTION-4

Economics Multiple Choice Questions

 

Q61. In India, which one among the following formulates the fiscal policy?
[UPPCS (Mains) 2014]

(A) Planning Commission
(B) Finance Commission
(C) Finance Ministry
(D) Reserve Bank of India

Ans:(C) Finance Ministry

 

Q62. Which of the following economists, introduced fiscal policy as a tool to rectify the Great Depression of 1929-30?     [UKPCS (Pre) 2014]

(A) Prof. Keynes
(B) Prof. Pigou
(C) Prof. Marshall
(D) Prof. Crowther

Ans:(A) Prof. Keynes

 

Q63. A change in fiscal policy affects the balance of payments through
[Karnataka PSC (Pre) 2018 HCS (Pre) 2014]

(A) Only the current account
(B) Only the capital account
(C) Both the current account and capital account
(D) Neither current account nor capital account

Ans:(C) Both the current account and capital account

 

Q64. Which one of the following was not stipulated in the Fisca Responsibility and Budget Management Act 2003?   [UPPCS (Pre) 2006 Tripura PSC (Pre) 2010]

(A) Elimination of revenue deficit by the end of the fiscal year 2007-08
(B) Non-borrowing by the Central Government from Reserve Bank of India except – under certain circumstances
(C) Elimination of primary deficit by the end of the fiscal year 2008-09
(D) Fixing government guarantees in any financial year as a percentage of GDP

Ans:(C) Elimination of primary deficit by the end of the fiscal year 2008-09

 

Q65. Fiscal responsibility and Budget Management Act was enacted in India in the year
[UPPCS (Pre) 2009]

(A) 2007
(B) 2005
(C) 2002
(D) 2003

Ans:(D) 2003

 

Q66. Which one of the following statements appropriately describes the ‘fiscal stimulus’?
[Haryana PSC (Pre) 2015 UPSC (Pre) 2011]

(A) It is a massive investment by the government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth
(B) It is an intense affirmative action of the government to boost economic activity in the country
(C) It is government’s intensive action of financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
(D) It is an extreme affirmative action by the government to pursue its policy of financial inclusion

Ans:(B) It is an intense affirmative action of the government to boost economic activity in the country

 

Q67. Globalisation does not include     [BPSC (Pre) 2018]

(A) reduction in import duties
(B) abolition of import licensing
(C) free flow of FDI
(D) disinvestment of Public Sector Equity

Ans:(D) disinvestment of Public Sector Equity

 

Q68. The largest sources of tax revenue to Central Government of India are
[UPPCS (Pre) 1995]

(A) Union excise duties and corporate tax
(B) Custom duty and corporate tax
(C) Union excise duty and custom duty
(D) Custom duty and income tax

Ans:(A) Union excise duties and corporate tax

 

Q69. From which of the tax following direct taxes gives maximum net revenue to the Government? [BPSC (Pre) 2005, 1998]

(A) Corporation Tax
(B) Income Tax
(C) Wealth Tax
(D) Gift Tax

Ans:(A) Corporation Tax

 

Q70. Corporation Tax is on     [RAS/RTS (Pre) 1996]

(A) production of a company
(B) sale of goods
(C) income of a company
(D) stock of goods

Ans:(C) income of a company

 

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Read More Sections of Indian Economy Objective Questions

Each section contains maximum 80 Questions. To practice more questions visit other sections.
 

 Indian Economy Objective Questions – Section-1

 

 Indian Economy Objective Questions – Section-2

 

 Indian Economy Objective Questions – Section-3

 

 Indian Economy Objective Questions – Section-4

 

 Indian Economy Objective Questions – Section-5

 

 Indian Economy Objective Questions – Section-6

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