Fiscal Economics One Mark Online Test

Fiscal Economics One Mark Online Test (12th Standard Economics)

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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

Q21

The term 'fiscal' is derived from a Greek word which historically represents which of the following?

A.A leather bag B.A basket C.A balance scale D.A treasury chest

Q22

Which economist defined Public Finance as a subject lying on the borderline between Economics and Politics, concerned with the income and expenditure of public authorities?

A.Adam Smith B.Hugh Dalton C.Philip E. Taylor D.Arthur Smithies

Q23

In India, which administrative body is responsible for recommending the plans and policies of Direct Taxes to the government?

A.Central Board of Indirect Taxes and Customs B.Central Board of Direct Taxes C.Finance Commission of India D.Administrative Reforms Commission

Q24

The method of redeeming public debt by establishing a separate 'Sinking Fund' was first introduced in England by which of the following individuals?

A.Walpol B.Hugh Dalton C.Adam Smith D.Philip E. Taylor

Q25

Under which Article of the Indian Constitution is the Union Government required to submit its Annual Financial Statement, popularly known as the Union Budget, to the Parliament?

A.Article 112 B.Article 202 C.Article 116 D.Article 280

Q26

Which Article of the Indian Constitution governs the presentation of the Annual Financial Statement of a State Government in its Legislative Assembly?

A.Article 112 B.Article 116 C.Article 202 D.Article 268

Q27

Under which Article of the Indian Constitution is the special provision for a 'Vote-on-Account' budget presented?

A.Article 112 B.Article 116 C.Article 202 D.Article 280

Q28

In which financial year did the Government of India present Zero-Base-Budgeting (ZBB) for the first time?

A.1951-52 B.1987-88 C.1991-92 D.2017-18

Q29

The concept of 'Performance Budget', recommended by the Administrative Reforms Commission under Sir Hooper in 1949, was first implemented in which country?

A.United Kingdom B.India C.France D.United States of America

Q30

Which of the following budget deficits represents the fiscal deficit of the government minus interest payments on past borrowings?

A.Revenue Deficit B.Budget Deficit C.Primary Deficit D.Monetized Deficit

Q31

How many subjects of joint interest to both the Union and the States are currently included in the Concurrent List under the Seventh Schedule of the Indian Constitution?

A.100 subjects B.61 subjects C.52 subjects D.20 subjects

Q32

Which principle of federal finance states that the cost of collecting taxes should be kept at a minimum to maximize available public revenue?

A.Principle of Efficiency B.Principle of Administrative Economy C.Principle of Fiscal Access D.Principle of Adequacy

Q33

In which year was the first Finance Commission of India established to define the financial relations framework between the Centre and the States?

A.1947 B.1950 C.1951 D.1956

Q34

Who was appointed as the Chairman of the 15th Finance Commission of India, whose recommendations apply for the 2020–25 period?

A.Dr. Y. V. Reddy B.Dr. Vijay L. Kelkar C.N. K. Singh D.C. Rangarajan

Q35

Which scholar defined fiscal policy as a system where the government uses its expenditure and revenue programmes to produce desirable effects and avoid undesirable effects on national income, production, and employment?

A.Arthur Smithies B.Buehler C.Hugh Dalton D.Philip E. Taylor

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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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