taxes types, methods & budgeting process section 3 Practice Questions Answers Test with Solutions & More Shortcuts
Taxes Types, Methods & Budgeting Process PRACTICE TEST [6 - EXERCISES]
taxes types, methods & budgeting process section 1
taxes types, methods & budgeting process section 2
taxes types, methods & budgeting process section 3
taxes types, methods & budgeting process section 4
taxes types, methods & budgeting process section 5
taxes types, methods & budgeting process section 6
Question : 1
Consider the following statements about the Agriculture Income Tax
- Agriculture Income Tax is levied and collected by the Union Government.
- Agriculture Income Tax is levied throughout the country in India.
a) Both 1 and 2
b) 1 only
c) 2 only
d) Neither 1 nor 2
Answer »Answer: (d)
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.
They are levied by the state governments. Not all states levy agricultural income tax.
Question : 4
The term ‘Crowd-out’ in the economy is related to which of the following:
- Increased public sector spending replaces private sector spending
- Governments deficit spending through borrowed money leads to hardening of interest rates
- Government spending uses up financial resources that would otherwise be used by private firms
- Government providing a service or good that would otherwise be a business opportunity for private industry
a) (i) & (ii) only
b) (ii) & (iii) only
c) (i) only
d) All of the above
Answer »Answer: (d)
When the government borrows more, then there may be a decrease in private investment due to a reduction in the amount of savings available to the private sector.
This is because if the government decides to borrow from the private citizens by issuing bonds to finance deficits, these bonds (which are risk-free) compete with corporate bonds and other financial instruments for the available supply of funds.
If people decide to buy government bonds, the funds remaining to be invested in the private sector will be less.
Thus, some private/corporate borrowers will get "crowded out" of the financial markets as the government claims an increasing share of the economy's total savings.
This also increases the interest rate for the private sector.
Question : 5
Consider the following statements regarding the “Inverted Duty Structure” in international trade:
- It makes domestic manufactured goods less competitive against finished product imports in the domestic market.
- Finished goods are taxed at a higher rate than the raw materials
- Raw materials are taxed at a higher rate than the finished products
- This has reference to Customs Duty
a) (i) & (iii) only
b) (i) & (iv) only
c) (i) & (ii) only
d) (i), (iii) & (iv) only
Answer »Answer: (d)
When the import duty on raw materials is quite higher than the import duty on finished goods then it makes the domestic manufacturers less competitive because then traders start importing manufactured goods in the country rather than manufacturing the goods domestically.
India levies the highest duties on the import of raw rubber and one of the lowest duties on the import of finished rubber goods i.e. tyres. This has created an inverted duty structure.
IMPORTANT indian economy mcq EXERCISES
-
Top 500+ Indian Taxation System GK MCQ Quiz For SSC »
-
Top 500+ Taxes Types & Budgeting Process GK MCQ Quiz PDF »
-
499+ Tax Slab Types Benefits And Penalty GK MCQ Quiz PDF »
-
New 499+ Indian Taxation Laws Budget Current GK MCQ Quiz »
-
New 500+ Indian Income Tax Slab Laws Acts GK MCQ Quiz PDF »
-
1000+ Indian Tax System Types Concepts MCQ Quiz For IBPS »
Taxes Types, Methods & Budgeting Process Shortcuts »
Click to Read...taxes types, methods & budgeting process section 3 Online Quiz
Click to Start..Taxes Types, Methods & Budgeting Process Shortcuts and Techniques with Examples
indian economy MCQ CATEGORIES
-
» Introduction to Indian Economy
-
» Planning, Economic Development & Five year Plans
-
» National Income & Human Development Index
-
» Agriculture Sector, Subsidy and Food Processing
-
» Industries, Manufacturing & Service Sectors
-
» Inclusive growth, Sustainable development and employment
-
» Poverty & Unemployment
-
» Introduction to Micro Economics
-
» Introduction to Macro Economics
-
» Macro fundamentals, GDP, Investment, Growth
-
» Demand & Supply, Profit Loss, Inflation & Price Index
-
» Fiscal Policy, Public Finance and Monetary Policy
-
» Money Supply, Banking and Financial Institutions
-
» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
RECENT BLOGS
Recently Added Subject & Categories For All Competitive Exams
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »
IBPS Profit and Loss Questions Solved Problems with PDF
Most important Profit and Loss multiple choice questions and answers with PDF for IBPS RRB PO. 100+ Aptitude MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Average Aptitude Questions Answers solutions MCQ PDF
New Average multiple choice questions and answers with PDF for IBPS RRB PO. 100+ Quantitative Aptitude MCQ Practice Exercises all competitive exams
Continue Reading »