Economy Public Finance questions

 

1 Fiscal Policy is concerned with-

(A) The volume of currency that banks should put in the economy.
(B) The Policy regarding taxation and Expenditure.
(C) Policy for regulating Stock.
(D) The Policy for dealing with IMF

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2. Which one of the following statements appropriately describes the 'fiscal stimulus'?

(A) It is a massive investment by the government in the 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 the government's intensive action of financial institutions to ensure disburse ment 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.

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3. Consider the following important sources of tax revenue for the Central Government in India-

1. Union Excise Duty
2. Corporation Tax
3. Income Tax
4. Service Tax

Which of the following is the correct descending order in terms of Gross Tax Revenue?

(A) 1, 2, 4, 3
(C) 2, 3, 1, 4
(B) 2, 4, 1, 3
(D) 4, 1, 2

 

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4. The largest sources of tax revenue to Central Government of India are-

(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 

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5.Corporation tax -

(A) is levied and appropriated by the states
(B) is levied by the Union and collected and appropriated by the states
(C) is levied by the Union and shared by the Union and the States.
(D) is levied by the Union and belongs to it exclusively by the Union Government 

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6.Agricultural Income Tax is assigned to the State government by-

(A) The Finance Commission
(B) The National Development Council
(C) The Inter-state Council
(D) The Constitution of India. 

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7. Of the following taxes which one is not levied by state Governments?

(A) Entertainment Tax
(B) State Excise Duty
(C) Agricultural Income Tax
(D) Corporation Tax

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8. Which among the following are the sources of revenue for the central Govt.?

I. Corporate Tax
II. Profit from Public Enterprises
III. Sale of National Savings Certificates
IV. Loans received from the World Bank
V. Excise duties

Select the correct answer from the codes given below-

(A) I, II and III
(B) III, IV and V
(C) II, III and IV
(D) All of the above

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9. Which of the following statements are true for the Income Tax in India?

Choose the correct answer from the codes
given below-

1. It is a progressive tax.
II. It is a direct tax.
III. It is collected by the state Governments

IV. It is a proportional tax.

Code

:
(A) Only I is correct
(B) Only I and II are correct 
(C) I, II and III are correct
(D) II, III and IV are correct 

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10. The main source of revenue for the National Highway Authority of India is-

(A) Foreign assistance
(B) Market borrowings
(C) Budgetary support of Union Government
(D) Cess

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11  A redistribution of income in a country can be best brought through-

(A) Progressive taxation combined with progressive expenditure
(B) Progressive taxation combined with regressive expenditure.
(C) Regressive taxation combined with regressive Taxation
(D) Regressive taxation combined with progressive expenditure 

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12. Which of the following Tax is levied by Union but collected and appropriated by States?

(A) Stamp Duties
(B) Passenger & Goods Tax
(C) Taxes on Newspapers
(D) None of the above/More than one of the above

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13. Consider the following in relation with Corporate tax-

1. Total turnover of the company
2. Profit after distribution of dividend
3. Profit before distribution of dividend
4. Capital employed in the company 

Which one of the above is basis of corpora tax?

(A) 1 alone
(B) 3 alone
(C) 2 alone
(D) 4 alone 

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14. Find the tax which is direct tax among the
following- 

(A) House / Property tax 
(B) Central Govt GST
(C ) State Govt GST
(D) None of the Above

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Answers

1B,  2B,  3A, 4A,  5D, 6D,  7D, 8D, 9B, 10D, 11B,  12A, 13B, 14 A