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

71 Freeing the economy from all unnecessary controls and regulations is referred to as

A Freedom

B Liberalisation

C Globalisation

D Privatisation

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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?

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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

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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

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Answer: Option [B]

75 Economic growth is dependent mainly on

A Price stability

B Population growth

C Level of consumption

D Level of investment

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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

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Answer: Option [A]

77 Who said, “Economics is the Science of Wealth”?

A Keynes

B Adam Smith

C J.S. Mill

D Robbins

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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

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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

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Answer: Option [A]

80 Indirect taxes by nature are

A Proportional

B Progressive

C Regressive

D Degressive

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Answer: Option [C]

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

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