Federal Finance System in India - General Knowledge Multiple Choice Questions and Answers | Page-8

71 Freeing the economy from all unnecessary controls and regulations is referred to as
A Freedom
B Liberalisation
C Globalisation
D Privatisation

Answer: Option [B]
72 The incidence of Tax refers to
A Who pays the Tax?
B How Taxes can be shifted?
C Who bears the burden of Tax?
D Who transfers the Tax burden?

Answer: Option [C]
73 Economic rent does not arise when the supply of a factor unit is
A Perfectly elastic
B Perfectly inelastic
C Relatively elastic
D Relatively inelastic

Answer: Option [A]
74 If the main objective of the government is to raise revenue, it should tax commodities with
A High elasticity of demand
B Low elasticity of demand
C Low elasticity of supply
D High income elasticity of demand

Answer: Option [B]
75 Economic growth is dependent mainly on
A Price stability
B Population growth
C Level of consumption
D Level of investment

Answer: Option [D]
76 Interest paid by the government on the loans raised is called
A Debt Servicing
B Bridge-loan
C Deficit Financing
D Discounted Budgeting

Answer: Option [A]
77 Who said, “Economics is the Science of Wealth”?
A Keynes
B Adam Smith
C J.S. Mill
D Robbins

Answer: Option [B]
78 Value of output and value added can be distinguished if we know:
A The value of the sales
B The value of net indirect taxes
C The value of intermediate consumption
D The value of consumption of fixed capital

Answer: Option [C]
79 Which one of the following is not a ‘cannot of taxation’ according to Adam Smith?
A Canon of simplicity
B Canon of certainty
C Canon of economy
D Canon of convenience

Answer: Option [A]
80 Indirect taxes by nature are
A Proportional
B Progressive
C Regressive
D Degressive

Answer: Option [C]

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