1.legal description of the object with reference to which the tax applies is known as _______ ?
(A)Direct Tax
(B)Indirect Tax
(C)Base of Tax
(D)Elasticity of Tax
(E)None of them
2.Which among the following is the correct definition of Real Burden of Tax
(A)The reduction in the disposable income to the tax payers
(B)Amount of tax being paid by the taxpayers to the authorities
(C)Additional expenses incurred by the taxpayers, in addition to the amount paid to the authorities
(D)The Loss of the welfare to the taxpayers and the community as a whole
(E)None of them above
3.Which among the following is not a source of tax revenue?
(A)Export duties
(B)Stamp Fees
(C)Registration Fees
(D)Dividends of Public sector enterprises
(E)None of the above
4.In a progressive tax , the following statements holds true:
(A)Yield from Income tax increases as the national income increases.
(B)Yield from income tax decreases as the national income increases
(C)Yield from income tax does not alter as the national income increases
(D)Yield from income tax may increase or decrease as the national income increases
(E)No relations exist between yield of income tax and national income
5.Robin Hood effect is related to which of the following?
(A)Income and consumption
(B)Income generation
(C)Income redistribution
(D)Proportional tax
(E)Taxation in United States
6.Progressive Taxation is most closely associated to the base which the tax proposals are generally developed is ______?
(A)Expediency Theory
(B)Cost of service approach
(C)Ability to pay approach
(D)Concentration approach
(E)None of them
7.Which among the following does not go with Progressive taxation?
(A)ability to pay
(B)administrative convenience
(C)in built stabilizer
(D)will to work and save
(E)none of them
8.Bring out a false statement:
(A)The ability to pay refers to a method of apportioning a give tax burden amongst the tax payers
(B)The cost of service approach to taxation contemplates that the state should give up its basic protective and welfare functions
(C)Welfare considerations favor an equitable distribution of income and wealth
(D)In an underdeveloped economy public expenditure as a general weapon against economic instability has a limited use
(E)Public expenditure is of little use in encouraging the market segment of an underdeveloped economy for contributing the process of economic growth
9.A good that is non-rivalries and non-excludable, and whose benefits can not be prices and therefore to which the principle of exclusion does not apply comes under the following heading?
(A)Pure Private Goods
(B)Pure Public Goods
(C)Pure Free Goods
(D)Pure Market Goods
(E)None of them
10.With which of the following, Public Finance does not deal with ?
(A)Public Revenue
(B)Public Expenditure
(C)Money Supply
(D)Financial Administration
(E)Government Intervention
11.Which among the following does not come under Land Resources:
(A)Fertility of Land
(B)Location of Land
(C)Composition of Land
(D)Water Resources in Land
(E)all of the above are land resources
12.Which among the following is the most important determinant of the size of the market in an economy?
(A)Population
(B)Cost of transport
(C)Infrastructure
(D)Productivity
(E)Monetary expansion
13.Find the odd man out:
(A)Tata Steel
(B)Air India
(C)Leela Hotel
(D)State Bank of India
(E)University of Delhi
14.Bring out the incorrect statement:
(A)Caste system hinders the mobility of labor and prevents an optimum use of the economy's resources
(B)In a developed economy there is little belief in man's power over nature
(C)Inelastic consumer demand is constraint on large scale production
(D)the creation of requisite infrastructure has to be spread over a certain period of time
(E)If social customs and traditions result in a higher propensity to consume, less is left for saving and investment
15.Bring out the incorrect statement:
(A)In developed economies Capital / labor ratio is low
(B)In most developing countries income distribution is highly skewed
(C)Industry can not function efficiently or expand unless there is a large scale market
(D)In the developed economies modern industrial sector absorbs almost all of the annual increase in the labor force
(E)Forced savings refer to reduced consumption because of higher taxes.
16.With which of the following the fiscal policy is related to ?
(A)Open market Operations
(B)Change in Reserve requirements
(C)Liquidity Adjustment facility
(D)Borrowing abroad
(E)Taxation and government spending
17.Which among the following does not come under the monetary policy for regulating the economy?
(A)Discount rate
(B)Government spending
(C)reserve requirement
(D)Open market Operations
(E)None of the above
18.Which among the following comes under economic overheads?
(A)Hospitals
(B)Schools
(C)Road and Railways
(D)Sanitation facilities
(E)all of them are economic overheads
19.Without which of the following India can not develop?
(A)Incentive to profit
(B)Foreign aid
(C)savings
(D)Inflation
(E)None of them
20.Which among the following holds true for Economic Development?
(A)Economic Development is the value of country's total output of goods and services during a year estimated at constant prices
(B)Economic Development increases in real per capita GNP over a period of time
(C)Economic Development expresses the relations between two variables
(D)Economic Development shows balanced Growth
(E)all of them are correct
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