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Federal Finance System in India - General Knowledge Multiple Choice Questions and Answers | Page-9

Questions
81 The Minimum Wages Act was First passed in India in the year:
A 1947
B 1948
C 1949
D 1950

Answer: Option [B]

The Minimum Wages Act was First passed in India in the year 1948. The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled labours. THE MINIMUM WAGES ACT, 1948 ACT NO. 11 OF 1948 1* [15th March, 1948.] An Act to provide for fixing minimum rates of wages in certain employments.

82 ‘Hire and Fire’ is the policy of
A Socialism
B Capitalism
C Mixed Economy
D Traditional Economy

Answer: Option [C]

‘Hire and Fire’ is the policy of Mixed Economy. Hire and fire is a policy of a capitalist economy generally in a mixed economic system the government intervenes for the job security of workers and hence lessens the employee turnover.

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83 ‘Mixed economy’ refers to
A The co-existence of rich as well as poor
B The co-existence of public as well as private sector
C The promotion of agriculture as well as cottage industries
D The co-existence of heavy, small scale and cottage industries

Answer: Option [B]

‘Mixed economy’ refers to the co-existence of public as well as private sector. Mixed economy is one in which both public and private enterprises exist together, with some level of freedom to utilize capital for profit making. However, government interference is expected to achieve social aims. It is, however, coexistence of capitalism and socialism.

84 Taxation is a tool of
A Wage policy
B Price policy
C Fiscal policy
D Monetary policy

Answer: Option [C]

Taxation is a tool of Fiscal policy. Fiscal policy is therefore the use of government spending, taxation and transfer payments to influence aggregate demand. These are the three tools inside the fiscal policy toolkit.

85 Which one of the following is not included in current revenue of the Union Government?
A Loans
B Tax revenue
C Non-tax revenue
D Interest payments

Answer: Option [A]

The correct answer is Loans. Loans are not included in the current revenue of the Union Government.

86 Which one of the following is a direct tax?
A Sales Tax
B Excise Tax
C Wealth Tax
D Entertainment Tax

Answer: Option [C]

The correct answer is Wealth Tax. A direct tax called wealth tax is levied on properties owned by individuals, and it changes based on the property's market value. Wealth tax is payable by individuals, Hindu Undivided Family (HUF), and corporate taxpayers based on the residential status of the taxpayer.

87 Micro-economy is also called:
A Income theory
B Price theory
C Investment theory
D Expenditure theory

Answer: Option [B]

Micro-economy is also called Price theory. Microeconomics deals with the price mechanism of individual commodities which are determined by market forces of demand and supply. Price theory studies how prices of goods are determined in the commodity market and how process of factors of production are determined in the factor market.

88 Demand in Economics means:
A Market demand
B Aggregate demand
C Individual demand
D Demand backed by purchasing power

Answer: Option [D]

Demand in Economics means demand backed by purchasing power. The willingness and the ability to buy commodity backed with sufficient purchasing power refers to demand. The desire and the sufficient purchasing power- both ar needed to generate a demand of the particular commodity.

89 The principle of maximum social advantage is the basic principle of
A Macro Economics
B Micro Economics
C Fiscal Economics
D Environmental Economics

Answer: Option [C]

The principle of maximum social advantage is the basic principle of Fiscal Economics. According to Dalton, the principle of maximum social advantage is the most fundamental principle lying at the root of public finance. Hence, the best system of public finance is that which secures the maximum social advantage from its fiscal operations.

90 Value-added means value of
A Output at market prices
B Output at factor cost
C Goods and services less depreciation
D Goods and services less cost of intermediate goods and services

Answer: Option [D]

Value-added means value of Goods and services less cost of intermediate goods and services. Value of output refers to the market value of goods and services produced by a firm in a given accounting period. Intermediate cost occurs because of intermediate consumption.

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