public finance fiscal & monetary policy section 6 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (c)

Per capita, Gross National Product (GNP) is the best index of development. It can be derived by dividing the GNP of a country by its population.

The higher the level of per capita income, the higher is the economic development. The World Bank, in its world development report 1998, classified the countries in the world on the basis of per capita GNP.

Answer: (c)

Excise duty is a type of tax charged on goods produced within the country. In India, an excise tax is levied on the manufacturer of goods when those goods leave the place of the manufacturer.

Formerly called the Central Excise duty, this tax is now known as the Central Value Added Tax (CENVAT).

Answer: (d)

Answer: (c)

Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds.

An individual or company unable to make such payments is said to be "unable to service one's debt."

Answer: (a)

Industries are classified on the basis of the source of raw material. There are two types of industries agro-based and mineral-based industries.

Agro-based industries are the ones that produce jute, cotton, silk, tea, coffee, rubber etc. Mineral-based industries are iron and steel, cement, aluminium, machine tools, and petrochemicals producing industries