MCQOPTIONS
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MCQOPTIONS
This section includes 186 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (M.A. Economics) knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
Impact of a tax refers to |
| A. | final money burden |
| B. | immediate money burden |
| C. | indirect real burden |
| D. | none of the above |
| Answer» C. indirect real burden | |
| 152. |
Special assessment is also known as |
| A. | tax revenue |
| B. | battement levy |
| C. | vat |
| D. | none of the above |
| Answer» C. vat | |
| 153. |
The following is a characteristic of indirect tax – |
| A. | the impact and incidence are not on the same person. |
| B. | it is levied on income. |
| C. | taxes are progressive in nature. |
| D. | all of the above |
| Answer» B. it is levied on income. | |
| 154. |
Which factor has no role in the shifting of a tax? |
| A. | change in prices |
| B. | elasticity of demand and supply |
| C. | nature of demand |
| D. | income of the consumer |
| Answer» E. | |
| 155. |
Transfer Payments include |
| A. | old age pension |
| B. | subsidies |
| C. | wealth tax |
| D. | corporate income tax |
| Answer» E. | |
| 156. |
The following is not a characteristic of a tax. |
| A. | it is a compulsory payment |
| B. | every tax involves a sacrifice by tax payer |
| C. | there is a quid-pro-quo between the tax payer and the government. |
| D. | refusal to pay tax is a punishable offence. |
| Answer» D. refusal to pay tax is a punishable offence. | |
| 157. |
The objective of taxation by the Government are – |
| A. | raising revenue for the state |
| B. | to maintain economic stability |
| C. | to remove disparities in the distribution of income |
| D. | all of the above |
| Answer» E. | |
| 158. |
The basis of corporate tax is |
| A. | total turnover of the company |
| B. | profit after distribution of dividend |
| C. | profit before distribution of dividend |
| D. | capital employed in the company |
| Answer» B. profit after distribution of dividend | |
| 159. |
Federalism refers to a |
| A. | relationship between the national and state governments. |
| B. | relationship among the state governments. |
| C. | political system in which power is vested in the state governments. |
| D. | political system in which power is vested in the national government. |
| Answer» B. relationship among the state governments. | |
| 160. |
Interest payment is an item of |
| A. | revenue expenditure |
| B. | capital expenditure |
| C. | plan expenditure |
| D. | none of these |
| Answer» B. capital expenditure | |
| 161. |
If interest payments are subtracted from gross fiscal deficit, the remainder will be |
| A. | revenue deficit |
| B. | gross primary deficit |
| C. | capital deficit |
| D. | budgetary deficit |
| Answer» C. capital deficit | |
| 162. |
The concept of Zero-Based-Budget(ZBB) was given by |
| A. | ra musgrave |
| B. | jm keynes |
| C. | peter a pyhr |
| D. | ah hancen |
| Answer» D. ah hancen | |
| 163. |
The merit of zero-based budgeting is that |
| A. | tax liability is reduced |
| B. | profit go up |
| C. | deficit financing becomes zero |
| D. | expenditure is rationalized |
| Answer» E. | |
| 164. |
All taxes come under |
| A. | capital receipt |
| B. | revenue receipt |
| C. | public debt |
| D. | public expenditure |
| Answer» C. public debt | |
| 165. |
The relationship between tax collections and tax rates has been expressed by |
| A. | lorenz curve |
| B. | engel’s law |
| C. | laffer curve |
| D. | indifference curve |
| Answer» D. indifference curve | |
| 166. |
Octrio is levies and collected by |
| A. | centre |
| B. | state government |
| C. | local bodies |
| D. | all of the above |
| Answer» D. all of the above | |
| 167. |
Ad Valorom means |
| A. | according to value |
| B. | according to weight |
| C. | according to size |
| D. | according to advertisement costs |
| Answer» B. according to weight | |
| 168. |
Agriculture income tax is a source of revenue to |
| A. | central government |
| B. | state government |
| C. | local administration |
| D. | central and state government |
| Answer» C. local administration | |
| 169. |
Justice in taxation is best ensured by applying the principle of |
| A. | equal absolute sacrifice |
| B. | equal proportional sacrifice |
| C. | equal marginal sacrifice |
| D. | quid pro quo |
| Answer» D. quid pro quo | |
| 170. |
The principle of maximum social advantage is concerned with |
| A. | taxation |
| B. | expenditure |
| C. | public debt |
| D. | both taxation and public expenditure |
| Answer» E. | |
| 171. |
With a regressive tax, as income |
| A. | increases, tax rate remains the same |
| B. | decrease, the tax rate decreases |
| C. | increases, the tax rate increases |
| D. | increases, the tax rate decreases |
| Answer» E. | |
| 172. |
Which committee recommended tax on agriculture holding in India? |
| A. | tandor committee |
| B. | raj committee |
| C. | kelkar committee |
| D. | dantwala committee |
| Answer» C. kelkar committee | |
| 173. |
The ability to pay principle of taxation is logically most consistent with the normative notion of : |
| A. | tax neutrality |
| B. | horizontal equity |
| C. | value – added taxation |
| D. | vertical equality |
| Answer» E. | |
| 174. |
The greater the elasticity of supply, the greater is |
| A. | incidence of tax on buyers |
| B. | incidence of tax on sellers |
| C. | impact of tax on sellers |
| D. | impact of tax on buyers |
| Answer» B. incidence of tax on sellers | |
| 175. |
Concept of concentration and displacement effect in public expenditure are attributed to |
| A. | allen t. peacock and jack wiseman |
| B. | a r prest and i m d little |
| C. | a c pigou and j k mehta |
| D. | kenneth arrow and paul a samuelson |
| Answer» B. a r prest and i m d little | |
| 176. |
Canons of budgeting was given by |
| A. | adam smith |
| B. | h d smith |
| C. | marshall |
| D. | dalton |
| Answer» C. marshall | |
| 177. |
According to Wiseman and peacock, public expenditure will increase in a |
| A. | smooth manner |
| B. | reverse manner |
| C. | step – like manner |
| D. | none of the above |
| Answer» D. none of the above | |
| 178. |
Wealth tax was abolished in |
| A. | 2011 |
| B. | 2012 |
| C. | 2014 |
| D. | 2015 |
| Answer» E. | |
| 179. |
Expenditure tax was introduced in India as per the recommendation of ……………… |
| A. | nehru |
| B. | kaldor |
| C. | k n raj |
| D. | john mathai |
| Answer» C. k n raj | |
| 180. |
Which of the following canon of taxation is given by Adam Smith |
| A. | canon of diversity |
| B. | canon of simplicity |
| C. | canon of economy |
| D. | canon of productivity |
| Answer» D. canon of productivity | |
| 181. |
In case of deficit budget, when the deficits are covered through taxes, that budget is called: |
| A. | unbalanced budget |
| B. | surplus budget |
| C. | balanced budget |
| D. | none of these |
| Answer» B. surplus budget | |
| 182. |
Repayment of public debt refers to |
| A. | discharging duties |
| B. | redemption of public debt |
| C. | repayment |
| D. | recovery |
| Answer» C. repayment | |
| 183. |
Tobin tax is a tax on |
| A. | taxation in the share market |
| B. | transaction in the money market |
| C. | transaction on the commodity market |
| D. | transaction on the foreign exchange market |
| Answer» E. | |
| 184. |
If with the increase in income, the percentage of income collected as tax remains constant, tax will be called |
| A. | regressive |
| B. | progressive |
| C. | proportional |
| D. | neutral |
| Answer» D. neutral | |
| 185. |
A forward-shifted tax will affect |
| A. | buyers more than sellers |
| B. | sellers more than buyers |
| C. | buyers and sellers equally |
| D. | government revenues negatively |
| Answer» B. sellers more than buyers | |
| 186. |
A progressive income tax implies that |
| A. | the amount of tax falls with a rise in income |
| B. | the rate of rises with a rise in income |
| C. | both (a) and (b) |
| D. | the rate of tax decreases with a rise in income |
| Answer» C. both (a) and (b) | |