Economy General Knowledge Quiz Set 2

1. If interest payment is deducted from the fiscal deficit, then the balance is—

(A) Primary deficit
(B) Budgetary deficit
(C) Revenue deficit
(D) Monetary deficit

The correct option is (A) Primary deficit 

2. Which is the characteristic of a tax ?

(A) Tax is a payment for government service
(B) Tax is a compulsory payment
(C) Tax is voluntary
(D) To get benefit for a tax is compulsory

The correct option is (B) Tax is a compulsory payment 

3. Which government income is included in revenue budget ?

(A) Tax-revenue
(B) Non-tax-revenue
(C) Both of above
(D) None of the above

The correct option is (C) Both of above 

4. Which is included in Capital budget ?
(A) Income received from public borrowings
(B) Income received from tax-sources
(C) Income received from non-tax sources
(D) All of the above

The correct option is (A) Income received from public borrowings 

5. Which is not included in the principles of public expenditure as developed by Findley Shirras ?
(A) Principle of Economy
(B) Principle of Sanction
(C) Principle of Elasticity
(D) Principle of Surplus

The correct option is (C) Principle of Elasticity 

6. Which of the following is the largest significant factor of revenue expenditure of Central Government ?
(A) Defence Expenditure
(B) Subsidy
(C) Interest Payment
(D) Salary

The correct option is (C) Interest Payment 

7. In comparison to revenue deficit; the size of fiscal deficit is always—
(A) Higher
(B) Smaller
(C) Similar
(D) Uncertain

The correct option is (A) Higher 

8. What is CENVAT ?

(A) Direct Tax
(B) Indirect Tax
(C) Development Planning
(D) None of the above

The correct options is (B) Indirect Tax 

9. Where is Indian Diamond Institute (IDI) established ?

(A) New Delhi
(B) Mumbai
(C) Surat
(D) Jaipur

The correct option is (C) Surat 

10. What is the nature of income tax in India ?

(A) Proportional
(B) Progressive
(C) Regressive
(D) None of the above

The correct option (B) Progressive