Practice Objective quiz set 6 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) The recommendation of the Kelkar Task Force related to
(a)
(b)
(c)
(d)
Q-2) With a view to redress the grievances of tax payers speedily, Income Tax department has started a new electronic platform which is known as
(a)
(b)
(c)
(d)
The Income Tax department has launched a special electronic grievance redressal system called ‘e–nivaran’ in order to fast track taxpayer grievances and ensure early resolution of their complaints.
Q-3) Which of the following taxes does not directly increase the price of a commodity to buyers?
(a)
(b)
(c)
(d)
Q-4) Consider the following statements in regard to the Goods and Service Tax:
- The GST shall have two components: one levied by the centre, and the other levied by the states.
- The central GST and state GST are to be paid to the joint accounts of the centre and the states.
- While the imports would be zero-rated, the exports would be subjected to the GST.
Which of the above statements is/are correct?
(a)
(b)
(c)
(d)
The Goods and Services Tax (GST) is a Value Added Tax (VAT) replacing all indirect taxes levied on goods and services by the Indian Central and State governments.
India is a federal republic, and the GST is thus implemented concurrently by the central and state governments as the Central GST and the State GST respectively.
Exports will be zero-rated and imports will be levied the same taxes as domestic goods and services adhering to the destination principle.
Q-5) Consider the following statements:
- Government disinvesting its share in various public sector undertakings
- Process of disinvestment is very fast
- Process of disinvestment is very slow and government always falls short of target
Which of above statements is/ are true about government policy of disinvestment
(a)
(b)
(c)
(d)
The government of India is disinvesting its share from public sector undertakings. Most of the government undertakings were incurring losses during the pre liberalization period.
Hence, after the introduction of new economic policy in 1991, the government started downsizing its share in PSU. But the process of disinvestment is very slow due to a host of legal and political hurdles.
Q-6) Consider the following statements regarding "counter-cyclical" fiscal policy:
- The government uses the countercyclical policy to cool down the economy during the boom period
- In countercyclical policy, the government increases spending and reduces taxes during the economic slowdown
Select the correct answer using the code given below:
(a)
(b)
(c)
(d)
The government’s fiscal policy has a big role in stabilizing the economy during business cycles. The two important phases of business cycles are boom and recession. A recession should not be allowed to grow into a deep recession.
Similarly, a boom should not explode bigger. We may say that amplifying the business cycle is dangerous (growing boom and deepening recession).
Practically fiscal policy responses using taxation and expenditure can go in two ways in response to the business cycle: Countercyclical and pro-cyclical.
Business Cycle Fiscal Policy Boom Recession Pro-Cyclical Expenditure increases Tax decreases Expenditure decreases Tax increases Counter-Cyclical Expenditure decreases Tax increases Expenditure increases Tax decreases
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Q-7) Which is the biggest source of budgetary receipts in the year 2019-20 for Govt. of India?
(a)
(b)
(c)
(d)
Q-8) ‘Basel III’ norms target at which of the following? - Improve the banking sector’s ability to absorb shocks arising from financial and economic stress.
- Improve risk management and governance.
- Strengthen banks’ transparency.
Choose the correct answer using the codes given below:
(a)
(b)
(c)
(d)
Basel III is basically a regulatory accord designed specifically for the banking sector. It aims to improve the supervision, regulation and risk management within the sector. It also targets at strengthening the transparency of the banks.
Q-9) Which one of the following states is the first state to impose Agriculture Income Tax in India?
(a)
(b)
(c)
(d)
Bihar is the first state to impose agricultural income tax in India. Agricultural income tax is levied on the income from Agriculture. At present agriculture is subjected to two direct taxes and they are Agricultural Income-tax and Land Tax.
Agricultural Income-tax treatment: It is characterised as a valid source of income from sources that comprise Agriculture land, buildings on or related to Agricultural land card commercial product from an Agriculture land.
Q-10) The largest tax collected at the federal government level is the:
(a)
(b)
(c)
(d)
Roughly 80% comes from the individual income tax and the payroll taxes that fund the social insurance programmes.
Another 11% comes from corporate income tax and the rest is a form of a mixed course.