Fiscal Economics Book Back Practice Test

12th Standard Economics — Fiscal Economics: Book Back Online Practice Test

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The modern state is ____________.

A.Laissez-faire state B.Aristocratic state C.Welfare state D.Police state

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

A tax possesses which of the following characteristics?

A.Compulsory payment B.No direct quid pro quo C.Failure to pay is a punishable offence D.All the above

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

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 i and ii D.None of the above

GST is the equivalent of ____________.

A.Sales tax B.Corporation tax C.Income tax D.Local tax

A direct tax has the following merits EXCEPT ___________.

A.Equity B.Convenience C.Certainty D.Civic consciousness

Which of the following is a direct tax?

A.Excise duty B.Income tax C.Customs duty D.Service tax

Which of the following is NOT a tax under the Union list?

A.Personal Income Tax B.Corporation Tax C.Agricultural Income Tax D.Excise duty

Q10

Revenue receipts of the government do NOT include ___________.

A.Interest B.Profits and dividends C.Recoveries and loans D.Rent from property

Q11

The difference between revenue expenditure and revenue receipts is called ___________.

A.Revenue deficit B.Fiscal deficit C.Budget deficit D.Primary deficit

Q12

The difference between total expenditure and total receipts including loans and other liabilities is called ___________ (Note: Typographical error in textbook, conceptually refers to 'excluding borrowings').

A.Fiscal deficit B.Budget deficit C.Primary deficit D.Revenue deficit

Q13

The primary purpose of deficit financing is ___________.

A.Economic development B.Economic stability C.Economic equality D.Employment generation

Q14

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 the above

Q15

Which of the following is a method of repayment of public debt?

A.Conversion B.Sinking fund C.Funded debt D.All these

Q16

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

Q17

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

Q18

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

Q19

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

Q20

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

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About this Fiscal Economics test

This free online practice test covers Fiscal Economics from the 12th Standard Economics (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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