Chapter 9: Fiscal EconomicsMarch 11, 2024 Maven Leave a Comment Welcome to the Chapter 9: Fiscal Economics Quiz! This quiz is based on the book back questions. Name Email 1. Which of the following canons of taxation was not listed by Adam smith? a) Canon of equality b) Canon of certainty c) Canon of convenience d) Canon of simplicity None 2. The direct tax has the following merits except a) equity b) convenient c) certainty d) civic consciousness None 3. One of the following is NOT a feature of private finance a) Balancing of income and expenditure b) Secrecy c) Saving some part of income d) Publicity None 4. Consider the following statements and identify the correct ones. i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list. ii. The Constitution also provides for transferring certain tax revenues from union list to states. a) i only b) ii only c) both d) none None 5. The modern state is a) Laissez-faire state b) Aristocratic state c) Welfare state d) Police state None 6. The tax possesses the following characteristics a) Compulsory b) No quid pro quo c) Failure to pay is offence d) All the above None 7. “Revenue Receipts” of the Government do not include a) Interest b) Profits and dividends c) Recoveries and loans d) Rent from property None 8. Which of the following is not a tax under Union list? a) Personal Income Tax b) Corporation Tax c) Agricultural Income Tax d) Excise duty None 9. GST is equivalence of a) Sales tax b) Corporation tax c) Income tax d) Local tax None 10. Which of the following is a direct tax? a) Excise duty b) Income tax c) Customs duty d) Service tax None 11. The primary purpose of deficit financing is a) Economic development b) Economic stability c) Economic equality d) Employment generation None 12. Finance Commission determines a) The finances of Government of India b) The resources transfer to the states c) The resources transfer to the various departments d) None of the above None 13. The difference between total expenditure and total receipts including loans and other liabilities is called a. Fiscal deficit b. Budget deficit c. Primary deficit d. Revenue deficit None 14. Methods of repayment of public debt is a) Conversion b) Sinking fund c) Funded debt d) All these None 15. The difference between revenue expenditure and revenue receipts is a. Revenue deficit b. Fiscal deficit c. Budget deficit d. Primary deficit None 16. Conversion of public debt means exchange of a) new bonds for the old ones b) low interest bonds for higher interest bonds c) Long term bonds for short term bonds d) All the above None 17. Deficit budget means a) An excess of government’s revenue over expenditure b) An excess of government’s current expenditure over its current revenue c) An excess of government’s total expenditure over its total revenue d) None of above None 18. Consider the following statements and identify the right ones. i. The finance commission is appointed by the President ii. The tenure of Finance commission is five years. a) i only b) ii only c) both d) none None 19. Which one of the following deficits does not consider borrowing as a receipt? a) Revenue deficit b) Budgetary deficit c) Fiscal deficit d) Primary deficit None 20. The word budget has been derived from the French word “bougette” which means a) A small bag b) An empty box c) A box with papers d) None of the above None Time's upRelated Posts:Chapter 11: Economics of Development and PlanningChapter 10: Environmental EconomicsChapter 7: International EconomicsChapter 5: Monetary Economics
Leave a Reply