SSC CGL ECONOMICS Fiscal System
1. A tax which is paid by the person on whom the tax is incident is called a :
(a) local tax (b) indirect tax
(c) direct tax (d) rate
2. Rate of growth of an economy is measured in terms of :
(a) per capita income
(b) industrial development
(c) number of people who have been lifted above the poverty line
(d) national income
3. Which is the best measure of economic growth of a country?
(a) GNP (b) GDP
(c) Net revenue (d) None of these
4. By which bill does the government make arrangement for the collection of revenues for a year?
(a) Supplementary Budget (b) Finance Bill
(c) Fiscal Budget (d) Economic Bill
5. On account of some national emergency or in order to carry out some secret mission, the government sometimes requires funds but may not give the details of the expenditure estimates. The House grants some lumpsum for this called:
(a) emergency budget (b) vote of Credit
(c) contingency bill (d) supplementary budget
6. Which of the following is not a method of estimating national income?
(a) Income method (b) Value-added method
(c) Expenditure method (d) Export-import method
7. The national income of India is estimated mainly through :
(a) production method alone
(b) expenditure method alone
(c) production and expenditure methods
(d) production and income methods
8. Which of the following are referred to as the developed economies ?
(a) Countries earning huge industrial profits
(b) Countries proficient in trade and export
(c) Countries having large per capita income
(d) Countries advanced in technology
9. An advalorem duty is a tax on the basis of :
(a) the price of a commodity
(b) the value added
(c) the advertisement expenditure
(d) the unit of the commodity
10. The budget is presented to the Parliament on :
(a) the last day of February
(b) 15th March
(c) the last day of March
(d) 1st April
11. Which of the following is not true about ‘vote-on-account’?
(a) It is a budget presented in the Parliament to cover the deficit left by the last budget
(b) It does not allow the Government to set for the economic policies of the new plan which starts from April 1
(c) It prevents the Government from imposing fresh taxes or withdrawing old one
(d) This allows the Government to withdraw an amount for a period with the consent of Parliament
12. The system of Budget was introduced in India during the viceroyalty of :
(a) Canning (b) Dalhousie
(c) Ripon (d) Elgin
13. Temporary tax levied to obtain additional revenue is called:
(a) cess (b) rate
(c) fee (d) surcharge
14. Which of the following is wrongly matched?
(a) Cess - a compulsory levy collected by the government for a particular purpose from all persons
(b) Rate - a compulsory levy collected by the government from the beneficiaries of particular schemes
(c) Corporation tax - levied by corporations for civic amenities
(d) Proportional tax - a tax levied at the same time at all levels of the base
15. Which among the following formulates fiscal policy?
(a) RBI
(b) Finance Ministry
(c) SEBI
(d) Planning Commission
16. Which among the following is the regulatory authority for giving clearance for External Commercial borrowing?
(a) Foreign Investment Promotion Board
(b) RBI
(c) SEBI
(d) Foreign Investment Promotion Council
17. The Zero Base Budgeting in India was first experimented from:
(a) April, 1987 (b) April, 2000
(c) April, 1991 (d) None of these
18. The prices at which the government purchases food grains for maintaining the public distribution system and for building up buffer stocks are known as :
(a) Minimum Support Prices
(b) Procurement Prices
(c) Issue Prices
(d) Ceiling Prices
19. ‘Balanced Growth’ means :
(a) growth which brings about a balance between the rich and the poor
(b) growth which brings about a balance between the public and private sectors
(c) growth which brings about a balance between the traditional and modern sector
(d) growth pattern on which simultaneous investments are made in all the sectors of the economy, viz., Agriculture, Industry, Transport, Communication, etc.
20. Dear Money Policy implies:
(a) high price level
(b) large money supply
(c) high production
(d) high interest rates
21. Which of the following is wrongly matched :
(a) share market - stock exchange
(b) interest rate - fiscal policy
(c) export subsidy - fiscal policy
(d) general price index- inflation
22. Railway Budget in India was separated from general budget in :
(a) 1924-25 (b) 1941-42
(c) 1947-48 (d) 1950-51
23. One of the problems in calculating the national income in India correctly is :
(a) under-employment
(b) inflation
(c) non-monetised consumption
(d) low savings
24. Among Indian Economists who had done pioneering work on National Income?
(a) P. N. Dhar
(b) Jagdish Bhagwati
(c) V. K. R. V. Rao
(d) Prof. Shenoi
25. Who was the chairman of National Income Committee?
(a) P. C. Mahalanobis
(b) V.K.R.V. Rao
(c) D.R. Gadgil
(d) A.M. Khusro
26 . After 1991, the Central Government implemented various far-reaching reforms in the area of taxation. This was based on the recommendations of the:
(a) Wanchoo Committee
(b) Rajah Chelliah Committee
(c) Raj Committee
(d) Narsimhan Committee
27. Development is :
(a) synonymous with economic -growth
(b) narrower than economic growth
(c) wider than economic growth
(d) not related to economic growth
28. Invisible trade is a trade :
(a) of government with public institutions
(b) of the services like the bank, marine companies and shipping companies
(c) of corporate and financial institutions with government
(d) of government with other countries
29. What is ‘Recession’?
(a) Rise in the cost of production, especially because of wage increase
(b) Increase in money supply without a matching increase in production
(c) Reduction in production and employment for want of sufficient demand for goods
(d) None of these
30. A Multinational is:
(a) a company operating in several countries
(b) a company having shareholders from more than one country
(c) a company which does charitable work in poor countries
(d) a company that operates only in those countries that do not have import restrictions
31. The Indian budget includes:
(a) revised estimates for the current year
(b) budget estimates for the following year
(c) actual figures of the preceding year
(d) all of these
32. Deficit financing is spending :
(a) by getting foreign aid
(b) less than what is needed
(c) in excess of revenue
(d) by borrowing from abroad
33. National income of India is compiled by :
(a) Finance Commission
(b) Indian Statistical Institute
(c) National Development Council
(d) Central Statistical Organisation
34. The highest per capita income in the country goes to :
(a) Haryana (b) Delhi
(c) Punjab (d) Goa
35. The first estimate of national income in India was made by:
(a) Mahalanobis (b) V.K.R.V. Rao
(c) Dadabhai Naoroji (d) Prof. Sheroi
36. The per capita income is obtained by:
(a) summing up the income of all the citizens of the country
(b) dividing national income by the population
(c) estimating the minimum income of individual citizens
(d) dividing the total national capital with the profit earned
37. Which of the following is correct regarding the Gross Domestic Saving in India?
(a) Contribution of Household sector is the largest
(b) Contribution of Government sector is the largest
(c) Contribution of Corporate sector is the largest
(d) None of these
38. Which of the following is not required while computing Gross National Product (GNP)?
(a) Net foreign investment
(b) Private investment
(c) Per capita income of citizens
(d) Purchase of goods by government
39. Which of the following is not shared by the Centre and the States?
(a) Sales Tax
(b) Corporation Tax
(c) Income Tax
(d) Union Excise Duties
40. Which of the following taxes is not levied by the Union Government?
(a) Wealth Tax
(b) Excise Duty
(c) Profession Tax
(d) Income Tax
41. The principal source of revenue to the State Government in India is :
(a) Income Tax
(b) Sales Tax
(c) State Excise Duties
(d) Land Revenue
42. Which of the following is an indirect tax?
(a) Corporation Tax
(b) Excise Duty
(c) Wealth Tax
(d) Capital Gains Tax
43. VAT is alternate of:
(a) state tax
(b) central tax
(c) both (a) and (b)
(d) neither (a) nor (b)
44. In India, the service tax was first introduced in the year :
(a) 1998 (b) 1996
(c) 1994 (d) 1992
45. Liquidity trap is a situation in which:
(a) people want to hold only cash because prices are falling everyday
(b) people want to hold only cash because there is too much of liquidity in the economy
(c) the rate of interest is so low that no one wants to hold interest bearing assets and people wants to hold cash
(d) there is an excess of foreign exchange reserves in the economy leading to excess of money supply
46. The tax whose share in overall taxation revenue has gone up rapidly during the planning period is :
(a) income tax
(b) wealth tax
(c) capital gains tax
(d) tax on production
47. CENVAT is associated with:
(a) rate of indirect tax
(b) rate of income tax
(c) rate of direct tax
(d) none of the above
48. Taxation and the government’s expenditure policy are dealt under the :
(a) trade policy (b) budget
(c) fiscal policy (d) monetary policy
49. The largest contribution in India’s National Income is from:
(a) primary sector
(b) secondary sector
(c) tertiary sector
(d) any of the above
50. The ‘gilt edged’ market deals in :
(a) worn and torn currency notes
(b) bullion
(c) Govt, securities
(d) Corporate bonds
51. Investment in public works is known as :
(a) revenue expenditure
(b) capital expenditure
(c) current expenditure
(d) either (a) or (b)
52. A budgetary deficit means :
(a) total expenditure is more than total revenue
(b) current expenditure is more than current revenue
(c) capital expenditure is more than capital revenue
(d) total expenditure is more than current revenue
53. Fiscal deficit in the budget means:
(a) Revenue deficit plus the net borrowings of the government
(b) Budgetary deficit plus the net borrowings of the government
(c) Capital deficit plus revenue deficit
(d) Primary deficit minus capital deficit
54. Net factor income from abroad added to GDP gives:
(a) GNP (b) NNP
(c) NDP (d) Per Capita Income
55. Gross National Income is always more than Net National Income because it includes:
(a) foreign income
(b) capital consumption allowance
(c) indirect taxes
(d) direct taxes
56. National income refers to:
(a) money value of goods and services produced in a country during a year.
(b) money value of stocks and shares of a country during a year.
(c) money value of capital goods produced by a country during a year.
(d) money value of consumer goods produced by a country during a year.
57. Which one of the following forms the largest share of deficit in Govt, of India budget?
(a) Primary deficit (b) Fiscal deficit
(d) Revenue deficit (d) Budgetary deficit
58. Match the following:
A. Fiscal Deficit 1. Difference between Total Expenditure and total receipts
B. Budget Deficit 2. Difference between Revenue Expenditure and Revenue Receipt
C. Revenue 3.Difference between Total Expenditure and Revenue Receipts plus nondebt creating capital receipts
D. Primary 4. Difference between Total Expenditure and Revenue Receipts plus nondebt creating capital receipts minus interest payments
A B C D
(a) 3 1 2 4
(b) 4 3 2 1
(c) 1 3 2 4
(d) 3 1 4 2
60. Octroi is levied and collected by :
(a) Centre
(b) State Government
(c) local bodies
(d) all the above
ANSWER KEY
