Business Economics IV
Business Economics 4 Second Year B.Com Sem 4 MCQ Collection
01) Deficit financing is resorted when--------
- Public exependiture > Public Investment
- Public Expenditure < Public Revenue
- Public Revenue = Public Expenditure
- Public exependiture > Public Investment
Answer: Public Expenditure > Public Revenue
02) In most modern economies, governments deal with------Policy.
- Monetary
- Fiscal
- Cultutal
- Ethical
Answer: Fiscal
03) Loss of welfare suffered by people of debtor country is reffered to as-------.
- Direct real burden
- Sum of money payments for principal and interest
- Effect on production and resource allocation
- Foreign currency burden
Answer: Direct real burden
04) Under constant cost condition, the burden of tax is---------.
- shifted fully to the buyers
- borne fully by the sellers
- shifted partially to the buyers
- shifted partially to the sellers
Answer: shifted fully to the buyers
05) During recesssion----------.
- Public expediture should be increased
- Public expenditure should be reduced
- Taxation should be increased
- Public debt should be incurred
Answer: Public expediture should be increased
06) Who simplifies the role of the state?
- Musgrave's Law
- Wagner's Law
- Dalton's Law
- Peacock's Law
Answer: Wagner's Law
07) The term market failure refers to --------
- A market that fails to allocate resources efficiently
- An unsuccessful product
- Cut throat competition among firms
- A firm that is forced out of business because of lossess
Answer: A market that fails to allocate resources efficiently
08) The affairof t he country are conducted by the authorities of different levels of government in which of the following systems?
- Unitary system
- Dictatorship
- Federal system
- Democracy
Answer: Federal system
09) The transfer of taxing and expenditure powers from the control of central government to state and local govt.is known as--------
- administrative decentralization
- Fiscal decentralization
- Social decentralization
- Cultural decentralization
Answer: Fiscal decentralization
10) In India,------includes sharing of taxes.
- Fiscal federalism
- Democracy system
- Social system
- Political system
Answer: Fiscal federalism
11) Which of the following statements applies to the principle of functional finance?
- Budget deficits are uneconomical at all times and should be avoided
- Social objectives should be the primary focus of fiscal policy
- Government spending should be restricted to tradtional functions.
- Every public expenditure is inflationary
Answer: Social objectives should be the primary focus of fiscal policy
12) Which of the following is true of compensatory spending?
- It is necessary during recession
- It is necessary in inflation
- It is necessary in Recovry
- It is a built-in-stabiliser
Answer: It is necessary during recession
13) Which of the following is not a feature of the FRBM ACt?
- Neglect of social sector
- Neglect of development needs
- Easily attainable targets
- Neglect of primary deficit
Answer: Easily attainable targets
14) Which of the following statements explains the classical view on taxation?
- All taxes are anti-inflationary
- All taxes are not be anti-inflationary
- Taxation can be used for redidtribution of income
- Taxation can influence aggregate demand
Answer: All taxes are anti-inflationary
15) Accordig to Say's Law,
- Budget deficits do not stimulate the economy
- Supply creates its own demand
- The government shall maintain a reasonable level of demand at all times
- The capitalist system will collapse due to inherent crises
Answer: Supply creates its own demand
16) Goods and Services Tax (GST) was launched in India at the midnight of---------.
- July 30,2018
- June 30,2017
- June 30,2018
- July 30,2016
Answer: June 30,2017
17) When asymmetric information affects a relationship between two parties, it is always the case that---------
- Neither party is well informed
- One party is better informed
- The Local government is better informed
- the government is better informed
Answer: One party is better informed
18) Indirect taxes are also known as-------
- goods taxes
- service taxes
- commodity taxes
- cultural taxes
Answer: commodity taxes
19) In India Monetary Policy deals with-------.
- State Bank Of India
- Union Bank Of India
- Reserve Bank Of India
- Punjab National Bank
Answer: Reserve Bank Of India
20) IT is a part of" Beti Bachao Beti Padhao Mission" of the Government of India.
- MNREGA
- Sukanya Samriddhi Yojana
- Public Provident Fund
- Ayushman Bharat Yojana
Answer: Sukanya Samriddhi Yojana
21) It means the loans raised by the government.
- Public expenditure
- Public Revenue
- Public Debt
- Public Savings
Answer: Public Debt
22) Ayushman Bharat Yojana programme launced by Prime Minister Narendra Modi on--------.
- 15 th July 2017
- 15th August 2018
- 15th July 2018
- 15th September 2018
Answer: 15th August 2018
23) One of the first books exclusively written on public finance was by ----------in 1892
- Bastable
- Dalton
- Hicks
- Musgrave
Answer: Bastable
24) In which of the following programmes is life insurance linked with savings bank account?
- Pradhan Mantri Jan Dhan Yojana
- Atal Pension Yojana
- Public Provident Fund
- Pradhan Mantri Jeevan Jyoti Bima Yojana
Answer: Pradhan Mantri Jeevan Jyoti Bima Yojana
25) A-------budget should be followed during depression.
- Deficit
- Surplus
- Balanced
- Neutral
Answer: Deficit
26) Which one of the following is not within the scope of public finance?
- Public revenue
- Monetary management
- Public expenditure
- Financial administration
Answer: Monetary management
27) A productive public debt is------
- fully covered by assets of equal or greater value
- not easy to repay
- is also known as a deadwight debt
- more burdensome
Answer: fully covered by assets of equal or greater value