Federal Finance System in India - Chapter-wise Economics MULTIPLE CHOICE QUESTIONS with ANSWERS

11 Which among the following statements is not true when there is an increase in interest rate in an economy?

A Increase in saving

B Decrease in loan

C Increase in production cost

D Increase in capital return

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Answer: Option [D]

12 How the interest-level of a country is affected by FDI?

A Increases

B Decreases

C Remains unaffected

D There is increase or decrease

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Answer: Option [B]

13 Which among the following is not a non-customs duty obstacle in the world trade?

A Quantity restriction

B Restrictions on goods quality

C Determination of import duty uniformly

D Establishment of Standard of labour in manufacturing

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Answer: Option [C]

14 Which among the following has the least possibility of globalization?

A Increase in infrastructure

B To manage resources for investment

C Selections of labour force

D Location of capital works

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Answer: Option [D]

15 Indirect tax means:

A Tax base is income

B Direct relationship between tax payer and the government

C There is not direct relationship between the tax payer and the government

D The incidence and impact are on the same person on whom tax is imposed

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Answer: Option [C]

16 Which one of the following is NOT an example of indirect tax?

A Expenditure tax

B Customs duty

C Excise duty

D Sales tax

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Answer: Option [A]

17 The major aim of devaluation is to:

A Encourage imports

B Encourage exports

C Encourage both exports and imports

D Discourage both exports and imports

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Answer: Option [B]

18 Interest on public debt is a part of:

A National income

B Interest payments by households

C Transfer payments by the Govt.

D Transfer payments by the enterprises

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Answer: Option [C]

19 What is USP in marketing field?

A US Programme based

B Uninterrupted power supply

C Exclusive marketing features

D Unique Selling Proposition

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Answer: Option [D]

20 A tax is characterized by horizontal equity if its liability is

A Proportional to the income of tax payers

B The same for every tax payer

C Similar for tax payers in similar circumstances

D Proportional to the expenditure of tax payers

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Answer: Option [A]

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