Economics National income, Inflation, Budget, Taxation and GDP Test 5 Welcome to your Economics National income, Inflation, Budget, Taxation and GDP Test 5 Name Email 1.Current Account of Balance of payments does NOT include which of the following? (a) Investments (b) Transfer Payments (c) Trade in Goods (d) Trade in Services None 2.Which among the following indirect taxes is charged by the Central Government ? (a) Service Tax (b) Luxury tax (c) Purchase tax (d) Taxes on Lottery None 3.. Which of the following statements regarding Goods and Services Tax is INCORRECT ? (a) It has no Compliance Cost (b) This eliminates the far-reaching effects of tax. (c) It resolves disputes related to the classification of goods and services (d) Goods and services tax will not be a cost for registered retailers, so there will be no hidden tax. None 4. _______ is a type of direct Tax which is levied at the time of sale/purchase of securities through the Indian Stock Exchanges. (a) Stamp Duty (b) Shares and Securities Tax (c) Stamp and Securities Tax (d) Securities Transaction Tax None 5.The financial resources of an economy cannot be mobilized (a) Public Savings (b) Individual Savings (c) Taxation (d) Inflation None 6. In which year, the first Gender Budget Statement appeared in the Union Budget of India? (a) 2001-02 (b) 2005-06 (c) 2010-11 (d) 2007-08 None 7.What is the National Gross Domestic Product(GDP)? (a) The GDP that is calculated in terms of cryptocurrency. (b) The GDP that is calculated by taking a base year as a determinant (c) The GDP that is calculated at the current market price. (d) The GDP that excludes all exports and imports in the calculation. None 8.GST is NOT applicable on which of the following goods or services ? (a) Automobiles (b) Salon services (c) Restaurant services (d) Alcohol None 9.GST council is headed by : (a) Union Finance Minister (b) CAG (c) RBI Governor (d) Prime Minister None 10. Fiscal Policy is formulated by ______ in India. (a) NITI Ayog (b) Finance Ministry (c) RBI (d) Different Banks None 11.What is the meaning of Fiscal Deficit ? (a) Total revenue collected by the govt (b) The difference between total revenue and total expenditure of the govt (c) Total expenditure of the govt (d) Total amount of loan taken by the govt None 12.How many members are there in the GST Council ? (a) 33 (b) 35 (c) 25 (d) 23 None 13. Which of the following are the major state taxes in India? (a) Stamp duty and registration (b) Income tax (c) Corporation tax (d) Customs duty None 14. _____ is the final value of all the finished goods and services produced within a country’s borders in a specific time period. (a) Government revenue (b) Net National Product (c) Gross Domestic Product (d) Gross National Product None 15.Which one of the following brings out an annual publication titled 'National Accounts Statistics' containing Gross Domestic Product, Fixed Capital Formation and other macroeconomic aggregates? (a) The Indian Statistical Institute (ISI) (b) The Central Statistics Office (CSO) (c) The NAtional Sample Survey Office (NSSO) (d) The Reserve Bank of India (RBI) None 16.Name the Nobel Prize winning American economist whose report to the US Congress titled “National Income, 1929-35” paved the way for the calculation of Gross Domestic Product (GDP) as the ultimate measure of a country’s overall welfare. (a) Paul Samuelson (b) John Maynard Keynes (c) Simon Kuznets (d) Kenneth Arrow None 17. In which year was the Central Board of Revenue Act in India promulgated? (a) 1983 (b) 1963 (c) 1973 (d) 1953 None 18. What is the full form of GSTIN in relation to GST ? (a) Goods and Services Tax Identification Note (b) Goods and Services Tax Identification Number (c) Goods and Services Tax Information Number (d) Goods and Services Taxation Income Number None 19.What is the economic impact of increase in productivity of firms? (a) Decrease in Gross Domestic Product (b) No change in Gross Domestic Product (c) The impact may vary among nations and their economic conditions (d) Increase in Gross Domestic Product None 20. When the deficit is high, what happens to prices ? (a) Prices decrease (b) there is no direct impact on prices (c) Prices remain stable (d) Prices increase None 21.A substantial increase in capital expenditure or revenue deficit leads to ___. (a) Budgetary Deficit (b) Fiscal Deficit (c) Primary Deficit (d) Revenue Deficit None 22. A situation where the expenditure of the government exceeds its revenue is called: (a) Default Financing (b) Deficit Revenue (c) Budget Deficit (d) Default Revenue None 23.A _________ occurs when a government’s total expenditures exceed the revenue that is generated, excluding money from borrowings. (a) Current Account Deficit (b) Budgetary Deficit (c) Revenue Deficit (d) Fiscal Deficit None 24.A sustained rise in the general price level in an economy is called ___________. (a) Disinflation (b) Deflation (c) Inflation (d) Stagflation None 25. If there is a lack of money supply in comparison to the supply of goods and services, then the possible consequence would be_____. (a) Hyperinflation (b) Deflation (c) Devaluation (d) Inflation None 26.Which country was the first to implement Goods and Services Tax (GST)? (a) France (b) USA (c)Germany (d) Canada None Time's up
