public finance fiscal & monetary policy section 7 MCQ Questions & Answers Detailed Explanation

Question : 1

Which one of the following is part of fiscal policy?

a) Interest rate policy

b) Foreign policy

c) Production policy

d) Tax policy

Question : 2

Which statements about indirect taxes in India are true?

1. Yield from indirect taxes is more than that from direct taxes.
2. Indirect taxes have grown faster than direct taxes after 1947.
3. Indirect taxes are ultimately paid for by persons who do not actually pay taxes to the government.
4. Increase in indirect taxes is good in a developing country.

a) 1, 2 and 4

b) 2 only

c) 1 and 2

d) 1, 2 and 3

Question : 3

Which of the following economists, introduced fiscal policy as a tool to rectify the Great Depression of 1929-30?

a) Prof. Crowther

b) Prof. Marshall

c) Prof. Keynes

d) Prof. Pigou

Question : 4

The non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are

a) Replacement costs

b) Original costs

c) Explicit costs

d) Implicit costs

Question : 5

Match columns A and B wherein Column B defines Column A Column B I.  a.  II.  b.  III.  c. 

a) I-c, II-a, III-b

b) I-a, II-d, III-b

c) I-b, II-c, III-a

d) I-b, II-a, III-c

Question : 6

A tax is said to be regressive when its burden falls

a) None of these

b) more heavily on the poor than on the rich

c) less heavily on the poor than on the rich

d) equally on the poor as on the rich