NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 113 of 122)
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- The share of direct taxes, as a percentage of GDP in the post-independence period has.
- remained stagnant around 2.5 percent
- grown from 2.5
- declined from about 8 percent in the early 50՚s to about 2.5 percent now.
- shown no clear trend
- The Central Government has to resort to substantial borrowing since the early 80՚s, mainly; because
- It had expanded its expeditious on the social sector significantly
- it had embarked on an ambitious space programme
- the revenue expenditure had systematically out stepped current revenues.
- the revenue expenditure had systematically out stepped capital receipts.
- In the Union Budget for 1993 − 94, there was an introduction of a tax of ₹ 1400 for shopkeepers and retails traders with an annual turnover of ₹ 5 lakh and below. This is an example of
- sales tax
- excise duty
- presumptive income tax
- turnover tax
- The government has recently stressed the importance of limiting the quantum of fiscal deficit to 5 percent of GDP. This context fiscal deficit has been defined as the
- difference between all receipts and expenditure both revenue and capital
- increase in net RBI credit to the Central government
- excess of total expenditure including loans net of lending over revenue receipts, grants and non-debt capital receipts
- Excess of revenue expenditure over revenue and capital receipts.
- Consider the following statements: The objective of personal income tax reform in the recent past has been to
- bring the ‘hard-to-tax’ groups into the tax net
- adopt a highly progressive a rate schedule
- choose moderate rates.
- allow as few deductions and exemptions as is possible.
- Of the above statements
- 1 2 and 3 are correct
- 2,3 and 4 are correct
- 1,2 and 4 are correct
- 1,3 and 4 are correct.
- Codes:
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Banking sector՚s contribution to national income is zeros.
- Reason (R) : By the usual methods of calculation, the net factor payment in the banking sector amounts to zero.
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Consumer՚s surplus is the difference between the potential price and the actual price.
- Reason (R) : There exists an inverse relationship between the price and the consumer՚s surplus.
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : The long run cost curve is L-shaped rather than U-shaped.
- Reason (R) : The new techniques of production of large plants reduce the total costs per unit of output.
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : The imposition of a per unit tax because the monopolist՚s average cost and marginal cost curves to shift up:
- Reason (R) : The per unit tax is like a variable cost.
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Money is a link between the present and the future.
- Reason (R) : Money is a store of value
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) According to Baumol, the transactions demand for cash varies with respect to the square-root of the volume of transactions. Reason (R) : Transaction demand for money is a function of income.
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : There would be o trade-off between inflation and unemployment even in the short run if people՚s expectations are rational.
- Reason (R) : Rational expectations imply forecasting the future correctly
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : The major distinguishing feature of a commercial bank is its ability to create money.
- Reason (R) : It has a legal power to do so.
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Factor price equalization theorem deals with the effect of trade on factor prices.
- Reason (R) : Trade in goods has no effect on factor prices.
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Heckscher-Ohlin theory invalidated the classical theory of comparative costs.
- Reason (R) : Heckscher-Ohlin theory goes behind the comparative cost theory.
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true