Federal Finance System MCQs - Chapter-wise Economics Objective Type Questions with Answers

41 Which of the following is the classification of Industries on the basis of raw-materials?

A Basics and Consumer

B Primary and Secondary

C Small Scale – Large scale

D Agro-based and Mineral based

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Answer: Option [D]

42 Which is the most essential function of an entrepreneur?

A Risk bearing

B Marketing

C Management

D Supervision

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Answer: Option [A]

43 Excise duty on a commodity is payable with reference to its

A Production

B Production and sale

C Production and transportation

D Production, transportation and sale

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Answer: Option [A]

44 Purchasing Power Parity theory is related with

A Wage rate

B Bank rate

C Exchange rate

D Interest rate

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Answer: Option [C]

45 Which of the following taxes is not collected by the Central Government?

A Excise duty

B Professional tax

C Income tax

D Customs duty

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Answer: Option [B]

46 Which one of the following is a developmental expenditure?

A Grant-in-aid

B Debt services

C Civil administration

D Irrigation expenditure

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Answer: Option [D]

47 “Interest is a reward for parting with liquidity” is according to

A Marshall

B Keynes

C Ohlin

D Haberler

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Answer: Option [B]

48 Surplus earned by a factor other than land in the short period of referred to as

A Quasi-rent

B Net rent

C Economic rent

D Super-normal rent

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Answer: Option [A]

49 Which from the following is not true when the interest rate in the economy goes up?

A Lending decreases

B Saving increases

C Return on capital increases

D Cost of production increases

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Answer: Option [C]

50 At present, India is following

A Fixed exchange rate

B Floating exchange rate

C Pegged up exchange rate

D Pegged down exchange rate

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Answer: Option [B]

Federal Finance System in India - General Knowledge Multiple Choice Questions and Answers | Page-5

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