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12th Standard Economics Fiscal Economics English Medium Free Online Test One Mark Questions 2020 - 2021

12th Standard

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Economics

Time : 00:20:00 Hrs
Total Marks : 20

    Answer all the questions

    20 x 1 = 20
  1. The modern state is

    (a)

    Laissez-faire state

    (b)

    Aristocratic state

    (c)

    Welfare state

    (d)

    Police state

  2. The direct tax has the following merits except

    (a)

    equity

    (b)

    convenient

    (c)

    certainty

    (d)

    civic consciousness

  3. Which of the following is not a tax under Union list?

    (a)

    Personal Income Tax

    (b)

    Corporation Tax

    (c)

    Agricultural Income Tax

    (d)

    Excise duty

  4. The difference between revenue expenditure and revenue receipts is

    (a)

    Revenue deficit

    (b)

    Fiscal deficit

    (c)

    Budget deficit

    (d)

    Primary deficit

  5. The primary purpose of deficit financing is

    (a)

    Economic development

    (b)

    Economic stability

    (c)

    Economic equality

    (d)

    Employment generation

  6. The word budget has been derived from the French word "bougette" which means

    (a)

    A small bag

    (b)

    An empty box

    (c)

    A box with papers

    (d)

    None of the above

  7. Financial operation of the government  _____________

    (a)

    Treasury

    (b)

    Bills of payment

    (c)

    Bills of exchange

    (d)

    All the above

  8. Public finance has been newly tert.ned as __________

    (a)

    Fiscal policy

    (b)

    Fiscal economics

    (c)

    Federal finance

    (d)

    None of these

  9. _________ can borrow from internal and exterhal sources.

    (a)

    The Government

    (b)

    The Private

    (c)

    Expenditure

    (d)

    None of these

  10. Defense is the ___________ function of the government.

    (a)

    Secondary

    (b)

    Primary

    (c)

    Tertiary

    (d)

    All of these

  11. Direct taxes are ____________

    (a)

    Progressive

    (b)

    Regressive

    (c)

    Proportion

    (d)

    Digressive

  12. Public finance is concerned with the income and expenditure of

    (a)

    Private sector

    (b)

    Agricultural sector

    (c)

    Public authorities

    (d)

    Industrial sector

  13. A Finance Commission is set up once in every …………..?

    (a)

    6 years

    (b)

    1 year

    (c)

    5 years

    (d)

    3 years

  14. The objective of taxation by the Government are

    (a)

    Raising revenue for the state

    (b)

    To maintain economic stability

    (c)

    To remove disparities in the distribution of income

    (d)

    All of the above

  15. Which of the following is not the source of revenue of village panchayats?

    (a)

    general property tax

    (b)

    taxes on land

    (c)

    profession tax

    (d)

    taxes on industries

  16. Which factor has no role in the shifting of a tax?

    (a)

    Change in prices

    (b)

    Elasticity of demand and supply

    (c)

    Nature of Demand

    (d)

    Income of the consumer

  17. Pick out the method which is not a part of redemption

    (a)

    Sinking Fund

    (b)

    Surplus Budget

    (c)

    Terminal Annuities

    (d)

    Refunding

  18. Assertion (A): The effectiveness of measures of the Government as well as private depends on the administrative machinery.
    Reason (R): If the administrative machinery is inefficient and corrupt it will result in wastages and losses

    (a)

    Both A and R are true and R is the correct explanation of A.

    (b)

    Both A and R are true but R is not the correct explanation of A.

    (c)

    A is true but R is false.

    (d)

    A is false but R is true.

  19. The property tax, wealth tax, inheritance tax, and income taxes such as personal and corporate taxes are

    (a)

    indirect taxes

    (b)

    direct taxes.

    (c)

    inelastic.

    (d)

    value-added tax.

  20. Match the correct codes

    1 Canon of Ability i The method of tax collection and the timing of the tax payment should suit the convenience of the people.
    2 Canon of Certainty ii The Government has to spend money for collecting taxes, for example, salaries are given to the persons who are responsible for collecting taxes.
    3 Canon of Convenience iii The Government must ensure that there is no uncertainty regarding the rate of tax or the time of payment.
    4 Canon of
    Economy
    iv The Government should impose tax in such a way that the people have to pay taxes according to their ability.
    (a)

    (1) – (i) (2) – (ii) (3) – (iv) (4) – (iii)

    (b)

    (1) – (ii) (2) – (iii) (3) – (iv) (4) – (i)

    (c)

    (1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)

    (d)

    (1) – (i) (2) – (ii) (3) – (iii) (4) – (iv)

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