300+ Economics Important Questions for SSC CGL and SSC CHSL Exams

300+ Economics Previous Year Questions for SSC CGL and SSC CHSL Exams

This page contains Practice Questions on Economics with answers for important SSC CGL, SSC CHSL or 10+2 and other competitive exams. These Multiple Choice Questions has been collected by our team from different previous years exams like SSC CGL, CHSL or 10+2. We hope this will helpful  in enhancing your EXAM PREPARATION.

300+ Compilation of Economics Previous Year Questions for SSC CGL and SSC CHSL Exams

1). What is referred as Repository services?

1. A new scheme of fixed deposits
2. A method of regulating stock exchanges
3. An agency for safe - keeping of securities
4. An advisory service to investors

Answer: 3. An agency for safe - keeping of securities

2). Under the minimum reserve system, the Reserve Bank of India as the sole authority of note issue is required to maintain assets worth not less than

1. 115 crores of rupees
2. 85 crores rupees
3. 200 crores of rupees
4. 210 crores of rupees

Answer: 3. 200 crores of rupees

3). Devaluation usually causes the internal prices to:

1. Fall
2. Rise
3. Remained unchanged
4. None of the above

Answer:  3. Remained unchanged

4). One of the objectives of Industrial Licensing Policy in India was to ensure:

1. Creation of adequate employment opportunities.
2. Free flow of foreign capital in Indian Industries.
3. Use of modern technology.
4. Balance industrial development across regions

Answer:  2. free flow of foreign capital in Indian Industries

5). The type of note issue system followed in India is :

1. Maximum fiduciary system
2. Minimum reserve system
3. Proportional Fiduciary system
4. Fixed Fiduciary system

Answer: 2. minimum reserve system

6). Inflation is caused by :

1. Increase in supply of goods
2. Increase in cash with the government
3. Decrease in money supply
4. Increase in the money supply

Answer: 4. Increase in the money supply

7). A firm sells new shares worth Rs. 1000 directly to individuals. This transaction will cause:

1. Gross National product to rise by Rs. 1000
2. Gross Domestic product by the RS. 1000
3. National Income by to rise by the Rs. 1000
4. No impact on Gross National Product

Answer:  4. No impact on Gross National Product

8). which of the following is not true when the interest rate in the economy goes up?

1. Saving Increases
2. Lending decreases
3. Cost of production increases
4. Return on capital increases

Answer: 3. Cost of production increases

9). the ‘break-even’ point is where

1. marginal revenue equals marginal cost
2. average revenue equals average cost
3. total revenue equals totals costs
4. None of these

Answer: 2. average revenue equals average cost

10). Rate of Interest is determined by

1. The rate of return on the capital invested
2. Central Government
3. Liquidity preference
4. Commercial Banks

Answer: 3. Liquidity preference

11). Which of the following has not been a component of that agricultural strategy that brought about the Green Revolution ?

1. Greater intensity of cropping
2. Guarantee maximum prices
3. New agricultural technology
4. Package of Inputs

Answer : 2. Guarantee maximum prices

12). Which is not included in the private income arising in a country?

1. Factors income from net domestic products
2. Net factors income from aboard
3. Current transfers from Government
4. Current payments on foreign loans

Answer: 4. Current payments on foreign loan

13). IMF was established to meet which of the following objectives?

1. Promoting International Monetary Cooperation
2. Expanding International Trade
3. Lessening the disequilibrium in balance of trade
4. Avoiding competitive exchange depreciations

Answer: 1. Promoting International Monetary Cooperation

14). which of following taxes is exclusively and totally assigned to the central government by the constitution?

1. Estate Duty
2. Sales Taxes
3. Taxes on Railway Fares and Freights
4. Corporation Taxes

Answer: 4. Corporation Taxes

15). What does ECS in banking transaction stand for ?

1. Excess Credit Supervisor
2. Extra Cash Status
3. Exchange Clearing Standard
4. Electronic Clearing service

Answer: 4. Electronic clearing Service

16). ‘The national income consists of a collection of goods and services reduced to common basis by being measured in term of money.’ - Who said this ?

1. Samuelson
2. Kuznets
3. Hicks
4. Pigou

Answer: 2. Kuznets

 17). Capitals: Output Ratio of measures

1. Its per unit cost of production
2. The amount of capitals invested per unit of output
3. The ratio of capital depreciation to quantity of output
4. The ratio of working capital employed to quantity of output

Answer: 2. the amount of capitals invested per unit of output

18). Which of the following items is not included in the current account of India’s Balance of Payments?

1. Short - Term Commercial Borrowing
2. Non - monetary gold movements
3. Investment Income
4. Transfer Payments

Answer: 1. Short - Term Commercial Borrowing

19). Efficient allocation of resources is achieved to greatest extent under

1. Monopoly
2. Perfect Competition
3. Monopolistic competition
4. Oligopoly

Answer: 2. Perfect Competition

20). “Supply creates its own demand “- Who said this?

1. J.B. Say
2. J.S. Mill
3. J.M. Keynes
4. Senior

Answer: 1. J.B. Say

21). the total numbers of nationalized bank in India is

1. 14
2. 19
3. 21
4. 30

Answer: 2. 19

22). in which plan was self-reliance first emphasized

1. Second Plan
2. Third Plan
3. Fourth Plan
4. Fifth Plan

Answer: 4. Fifth Plan

23). the full of IRDA is

1. Insurance Regulatory and Development Authority
2. International Reconstruction and Development Association
3. India Road Development Agency
4. International Refinance and Development Association

Answer: 1. Insurance Regulatory and Development Authority

24). International Monetary Fund helps India with

1. short term capital to hide over any temporary difficulty in payment of balance
2. long term capital for purposes of reconstruction and development
3. medium term capital to build up infrastructure
4. grants at subsidized rates to stimulate private investment

Answer: 2. long term capital for purposes of reconstruction and development

25). The demand curve for Geffen good is

1. upward rising
2. downward falling
3. parallel to the quantity axis
4. parallel to price axis

Answer: 1. upward rising

26). The main function of the World Trade Organization is:

1. enforcing of Uruguay Round Agreements
2. facilitating multi-lateral trade relations of members countries and reviewing trade policies
3. administrating trade dispute policies
4. None of these.

Answer: 2. facilitating multi-lateral trade relations of member’s countries and reviewing trade policies

27). The world bank normally gives:

1. short-term loans
2. medium term loans
3. long-term loans
4. medium and long-term loans

Answer: 4. medium and long-term loans

28). The IMF (International Monetary Fund) came into assistance with:

1. Berlin Conference
2. London Conference
3. Brettonwoods Conference
4. Rome Conference

Answer: 3. Brettonwoods Conference

29). Service Cooperatives are:

1. single purpose societies
2. single purpose societies
3. marketing societies
4. multiple-purpose societies

Answer: 3. Brettonwoods Conference

30). Structural adjustment loan loans given by the World Bank are meant for :

1. increasing employment in agriculture
2. increasing export-earning capacity of the borrower country
3. reducing inequalities of income distribution
4. encouraging capital -intensive  industries

Answer: 4. encouraging capital-intensive industries

31). The symbol of Reserve Bank of India is

1. Capital of Ashok Pillar
2. Kuber with a purse of money
3. Tiger before a palm tree
4. A dog sitting in a defensive state

Answer: 3. Tiger before a palm tree

32. When there is one buyer and many sellers then that situation is called as

1. Monopoly
2. Single buyer right
3. Down right
4. Double buyers right

Answer: 2. Single buyer right

33. Which Agency of Government has engaged to grade the standardize various agricultural products? 

1. Food Corporation of India
2. Directorate of Marketing and Inspection
3. Bureau of India Standards
4. Central Statistical organization

Answer: 2. Directorate of Marketing and Inspection

34. What is the purpose of the India Brand Equity Fund?

1. To promote in - bound tourism
2. To make "make in India "
3. To organize trade fairs
4. To provide venture capital to IT Sector

Answer: 2. to make "make in India”

35. Governance through trade union is known as:

1. Guild Socialism
2. Fabian Socialism
3. Syndicalism
4. Liberalism

Answer: 3. Syndicalism

36. Personal disposable income is:

1. Always equal to personal income.
2. Always more than person income.
3. Equal to person income minus direct taxes paid by household.
4. Equal to personal income minus taxes.

Answer: 3. equal to person income minus direct taxes paid by household

37. Which of the following most closely approximates our definition of oligopoly?

1. The cigarette industry.
2. The barber shops
3. The gasoline stations
4. Wheat farmers

Answer: 1. the Cigarette Industry

38. Who said 'supply creates its own demand’?

1. Adam Smith
2. J.B. Saw
3. Marshall
4. Ricardo

Answer: 2. J.B. Saw

39. The Indian Economy can be most appropriately described as a:

1. Capitalist economy
2. socialist economy
3. Traditional economy
4. Mixed economy

Answer: d. Mixed economy

40. One of the essential conditions of perfect competition is:

1. Product differentiation
2. Multiplicity of prices for identical products at any one time
3. Many sellers and a few buyers
4. Only one price for identical goods at any one time

Answer: 4. only one price for identical goods at any one time

41. Indirect tax means:

1. There is not direct relation between the tax payer and the govt.
2. Direct relationship between tax payers and the govt.
3. tax base is income
4. tax base is income

Answer: 1. there is not direct relation between the tax payer and the govt.

42. What is NARBARD’s primary role?

1. To provide term loans to state co-operative banks
2. To assist state govt. For share capital contribution
3. To act as re-finance
4. All the above

Answer: 4. All the above

43. Operating Surplus arises in the:

1. Government sector
2. Production for self-consumption
3. To act as re-finance
4. Enterprise Sector
5. Answer : 4. Enterprise Sector

44. Investment is equal to:

1. Gross total of all types of physical capital assets
2. Gross total of all capital assets minus wear and tear
3. Stock of plants, machines and equipments
4. All of the above

Answer: 1. Gross total of all types of physical capital assets

45. Under which plan did the govt. introduced an agricultural strategy which gave rise to Green Revolution?

1. Sixth Five year plan (FYP)
2. Second FYP
3. Fourth FYP
4. Third FYP

Answer: 4. Third FYP

46. Which one of the following is not an example of indirect tax 2?

1. Sales Tax
2. Excise duty
3. Custom duty
4. Expenditure

Answer: 4. Expenditure

47. The major aim of devaluation is to:

1. Encourage Imports
2. Encourage Exports
3. Encourage both exports and imports
4. discourage both exports and imports

Answer: 3. Encourage both exports and imports

48. Structural Unemployment arises due to:

1. Deflationary conditions
2. Heavy industry bias
3. Shortage of raw material
4. Inadequate productive capacity

Answer: 4. inadequate productive capacity

49. Interest on public debt is a part of:

1. Transfer payment by the enterprises
2. Transfer payment by the government
3. National Income
4. Interest payment by the household

Answer: 2. Transfer payment by the government

50.Per capita income is equal to :

1. National Income / Total Population of the country
2. National income + population
3. National Income - population
4. National Income x population

Answer: 1. National Income / Total Population of the country

300+ Economics Previous Year Questions for SSC CGL and SSC CHSL Exams

51. The Annapurna scheme was implemented in year:

1. 1998
2. 1996
3. 1999
4. 2000

Answer: 4. 2000

52. A balance of the trade of a country implies that:

1. Imports are greater than Exports
2. Exports are greater than Imports
3. Both exports and imports are equal
4. Rising Imports and falling Exports

Answer: 2. Exports are greater than Imports

53. The value of a commodity expressed in terms of money is know as

1. Price
2. Utility
3. Value
4. Wealth

Answer: 1. Price

54. The planning commission of India was established in the year

1. 1947
2. 1949
3. 1950
4. 1952

Answer: 3. 1950

55. Green Revolution was started in

1. 1960
2. 1970
3. 1980
4. 1990

Answer: 1. 1960

56. The term of the Finance commission is

1. 10 years
2. 5 years
3. 6 years
4. 3 years

Answer: 2. 5 years

57. Reserve bank of India was nationalized in

1. 1948
2. 1947
3. 1949
4. 1950

Answer: 3. 1949

58. in a capitalist economy, the prices are determined by:

1. Demand and Supply
2. Government Authorities
3. Buyers in the market
4. Sellers in the market

Answer:  1. Demand and Supply

59. Which of the following is not a cause of low productivity in Indian agriculture?

1. Co-operative farming
2. Inadequate inputs availability
3. Subdivision and fragmentation of land holdings
4. Poor Finance and marketing

Answer: 1. Co-operative farming

60. Monopolist resorts is an essential feature of

1. Elasticity of supply
2. Elasticity of  demand
3. Law of demand
4. Law of supply

Answer: 2. Elasticity of demand

61. Economics planning is an essential feature of

1. Socialist economy
2. Capitalist economy
3. Mixed economy
4. Dual Economy

Answer: 1. Socialist economy

62. The HYV programme in India is called as

1. Traditional Agriculture
2. New Agriculture Strategy
3. White Revolution
4. Blue Revolution

Answer: 2. New Agriculture Strategy

63. The national Policy for empowerment of women was adopted in the year

1. 2001
2. 2005
3. 1991
4. 1995

Answer: 1. 2001

64. Which revenue earned by the union govt. is not distributed among state governments?

1. Excise duty
2. Income tax
3. Custom duty
4. None of these

Answer: 3. Custom duty

65. A rising per Capita Income will indicate a better welfare if it is accompanied by –

(a) Unchanged Income distribution overall.

1. b) Changed Income distribution in favour of rich.

(c) Changed Income distribution in favour of poor.

(d) Changed Income distribution in favour of Industrial Labour.

Ans. (c)

65. GDP at factor cost equals–

(a) GDP – Indirect Tax + Subsidy

(b) GNP – depreciation

(c) NNP + depreciation

(d) GDP – subsidy + indirect tax.

Ans. (a)

66. Which among of the following is direct tax?

(a) Sales Tax

(b) Excise Tax

(c) Wealth Tax

(d) Entertainment Tax

Ans. (c)

67. Which among of the following is largest source of income for central govt.?

(a) Direct Taxes

(b) Custom Duty

(c) Excise Duty

(d) Entertainment Tax

Ans. (a)

68. Which among of the following is not direct tax?

(a) Income Tax

(b) Property Tax

(c) Gift Tax

(d) Sales Tax

Ans. (d)

69. The Example of Sales tax is-

(a) Corporate Tax

(b) Direct Tax

(c) Indirect Tax

(d) Welfare Tax

Ans. (c)

70. When there is affect on economic activity of an specific country due to import and export, then such economy are called-

(a) Closed economy

(b) Open economy

(c) Agricultural economy

(d) Industrial economy

Ans.(b)

71. The Worldwide great depression happens in which year-

(a) 1936

(b) 1929

(c) 1928

(d) 1930

Ans. (b)

72. Which among the following is not the investment of goods & services?

(a) Cost of machinery

(b) Increase in cost of raw goods

(c) Increasing department of company

(d) Cost of buying house.

Ans.(c)

73. Preparing butter and ghee for household consumption of own family is a part of –

(a) Household investment production

(b) Industrial production

(c) Consumption

(d) Own Account Production

Ans. (d)

74. Multinational firm is–

(a)A company started by foreign governments

(b)A single company established in different countries

(c)A company in India started by U.S. government

(d)A company started jointly by India and U.S.

Ans. (b)

75. 75. When there is affect on economic activity of an specific country due to import and export, then such economy are called-

(a)Closed economy

(b)Open economy

(c)Agricultural economy

(d)Industrial economy

Ans. (b)

76. The Worldwide great depression happens in which year-

(a) 1936

(b) 1929

(c) 1928

(d) 1930

Ans. (b)

77. Which among the following is not the investment of goods & services?

(a) Cost of machinery

(b) Increase in cost of raw goods

(c) Increasing department of company

(d) Cost of buying house.

Ans. (c)

78. Preparing butter and ghee for household consumption of own family is a part of –

(a) Household investment production

(b) Industrial production

(c) Consumption

(d) Own Account Production

Ans. (d)

79. Multinational firm is–

(a) A company started by foreign governments

(b) A single company established in different countries

(c) A company in India started by U.S. government

(d) A company started jointly by India and U.S.

Ans. (b)

80. Internal profit–

(a) Happens when internal trade expands

(b) Happens when business expands

(c) Happens in economy when they increase

(d) Happens in firms when they expand their product

Ans. (d)

81. The best Example of capital intensive industry in India is-

(a) Textile industry

(b) Steel industry

(c) Tourism industry

(d) Spare goods industry.

Ans. (b)

82. Which of the following is related to South-South debate?

(a) Cooperation between developing countries

(b) Defense Organization

(c) Sitting between developed & developing countries

(d) All of the above.

Ans. (a)
83. In an economy “Development Stage” means-

(a) Starting of steadily increasing economy

(b) Bad economy

(c) Economy is on the verge of destroying

(d) All tariff to be removed.

Ans. (a)

84. The Removal of prohibitions and hindrance by government is called.

(a) Globalization

(b) Privatization

(c) Liberalization

(d) Bilateral understanding.

Ans. (c) Liberalization

85. Which among of the following is not a ‘canon of taxation’ according to Adam Smith?

(a) Canon of certainty

(b) Canon of simplicity

(c) Canon of convenience

(d) Canon of economy inefficiency

Ans. (b) Canon of simplicity

86. VAT was firstly implemented in–

(a) Germany

(b) Spain

(c) France

(d) Russia

Ans. (c) France

87. CENVAT is related with–

(a) Service Tax

(b) Wealth Tax

(c) Excise duty

(d) Selling Tax

Ans. (c) Excise duty

88. ‘Value - added’ is equal to–

(a) Output Minus the Inputs

(b) Reconstruction profit

(c) Gross profit

(d) Investment profit

Ans. (a) Output minus the Inputs

89. Finance Commission is organized.

(a) Every year.

(b) After every four year

(c) After every two year

(d)After every five year

Ans. (d) after every five year 

90. Which of the statements is correct about India’s National Income?

(a) Percentage share of agriculture is higher than services.

(b) Percentage share of industry is higher than agriculture.

(c) Percentage share of services is higher than industry.

(d) Percentage share of services is higher than agriculture and industry put together.

Ans.(d) Percentage share of services is higher than agriculture and industry put together

91. in Centre – State financial relation in India, Gadgil formula is used in–

(a) Division of tax revenue

(b) Formulation of the policy for fresh borrowings

(c) Writing off state’s indebtedness to the centre

(d) Allocating Central Plan assistance between States

Ans. (a) Division of tax revenue

92. Which authority decides about the states’ share in central taxes?

(a) Finance Commission

(b) Planning Commission

(c) Election Commission

(d) Finance Ministry

Ans. (a) Finance Commission

93. The Worldwide great depression happens in which year-

(a) 1936

(b) 1929

(c) 1928

(d) 1930

Ans. (b) 1929

94. Which among the following is not the investment of goods & services?

(a) Cost of machinery

(b) Increase in cost of raw goods

(c) Increasing department of company

(d) Cost of buying house.

Ans.(c) Increasing department of company

95. Preparing butter and ghee for household consumption of own family is a part of –

(a) Household investment production

(b) Industrial production

(c) Consumption

(d) Own Account Production

Ans. (d) Own Account Production

96. Multinational firm is–

(a)A company started by foreign governments

(b)A single company established in different countries

(c)A company in India started by U.S. government

(d)A company started jointly by India and U.S.

Ans.(b)A single company established in different countries

97. When there is affect on economic activity of an specific country due to import and export, then such economy are called-

(a)Closed economy

(b)Open economy

(c)Agricultural economy

(d)Industrial economy

Ans. (b)Open economy

98. The Worldwide great depression happens in which year-

(a) 1936

(b) 1929

(c) 1928

(d) 1930

Ans. (b) 1929

99. Which among the following is not the investment of goods & services?

(a) Cost of machinery

(b) Increase in cost of raw goods

(c) Increasing department of company

(d) Cost of buying house.

Ans. (c) Increasing department of company

100. Preparing butter and ghee for household consumption of own family is a part of –

(a) Household investment production

(b) Industrial production

(c) Consumption

(d) Own Account Production

Ans.(d) Own Account Production

101. Multinational firm is–

(a) A company started by foreign governments

(b) A single company established in different countries

(c) A company in India started by U.S. government

(d) A company started jointly by India and U.S

 Ans.(b) A single company established in different countries

102. The tree like structure of records in a database in-

(a) Network Model

(b) Hierarchical Model

(c) Relational Model

(d) Multi-Dime moral Model

Ans. (b) Hierarchical Model

103. according to Kenz, consumption function shows relation between.

(a) Total Consumption and Total Population

(b) Total Consumption and Normal Price Rate

(c) Total Consumption and Total Income

(d)Total Consumption and Rate of Interest

Ans. (c) Total Consumption and Total Income 

104. Forced saving refers to-

(a) Compulsory deposits imposed on income tax payers

(b) Provident fund contribution of private sector employees

(c) Reduction of consumption consequent to a rise in price

(d) Taxes on individual income and wealth

Ans. (c) Reduction of consumption consequent to a rise in price

105. The Expenditure on advertisement and public relation by an enterprise is a part of its-

(a) Consumption of fined capital

(b) Final consumption Expenditure

(c) Intermediate Consumption

(d) Fined Capital

Ans. (c) Intermediate Consumption

106. If a country produces consumer goods only and nothing else, then-

(a) Standard of living will be highest

(b) The country have certain amount of good

(c) The country will soon become poor if external trade

will not happen

(d) The country will gradually become rich if external trade will not happen

Ans. (c) The country will soon become poor if external trade will not happen

107. Which of the following represents the saving of the Private Corporate Sector?

(a) Undistributed profits

(b) Excess of income over expenditure

(c) Dividends paid to shareholders

(d) Total profit of a company

Ans. (a) Undistributed profits

108. The Income of Indians working abroad is-

(a) Domestic Income of India

(b) Income earned from abroad

(c) Net domestic product of India

(d) Grave domestic product of India.

Ans. (b) Income earned from abroad

109. When increase in income the increase in ratio between income & expenditure changes–

(a) In same ratio

(b) Ratio less than 1

(c) Ratio more than one

(d) None

Ans. (b) Income earned from abroad

110. GDP is what percent of Fiscal deficit?

(a) 7

(b) 4

(c) 8

(d) 1

Ans. (b) 4

111. The Census of Indian agriculture is done by–

(a) Production Method

(b) Income Method

(c) Expenditure Method

(d) Consumption Method

Ans.(a) Production Method

112. The First Income Committee was established in–

(a) 1948

(b) 1949

(c) 1950

(d) 1951

Ans. (b) 1949

113. National Income include–

(a) Financial help to earthquake victims

(b) Poket money of a child

(c) Winning of a lottery Prize

(d) Construction of a new House

Ans. (d)

114. Other name of Net National Product at market price?

(a) National Income

(b) Gross Domestic Production

(c) Personal Income

(d) Per Capital Income

Ans. (a)

115. Compared to rich the poor’s saving is–

(a) A larger part of their income

(b) An equal part of their income

(c) A small part of their income

(d) All of their incomes

Ans. (c)

116. One of the main factors that led to rapid expansion of Indian exports is–

(a) Imposition of export duty

(b) Liberalization of the economy

(c) Recession in other countries

(d) Diversification of exports

Ans. (b)

117. A ‘Transfer Income’ is as –

(a) Income which is not produced by as production process.

(b) Income taken away from one person given over to another.

(c) Unearned Income

(d) Earned Income

Ans. (a)

118. Personal Income produced in a country is not included in–

(a) Production income from NDP

(b) Net Production Income from foreign.

(c)Transfer Income from government

(d) Current Payment on Foreign loans.

Ans. (d)

119. The Effect of ‘Investment Multiplier’ is shows on–

(a) Employment

(b) Savings

(c) Income

(d) Consumption

Ans. (c)

120. Which of the following tax is imposed by state govt.?

(a) Entertainment Tax

(b) Property Tax

(c) Income Tax

(d) Corporate Tax

Ans. (a)

121. Taxes are called as Regressive when-

(a) None of these

(b) It causes same burden on rich and poor

(c) Less burden on poor as compared to rich

(d) More burden on poor as compared to rich

Ans. (c)

122. In case of direct tax, impact of tax & incidence of tax is–

(a) On two different person

(b) On same person

(c) Any other person

(d) On that department which called tax.

Ans. (b) 

123. Who was the Chairman of tenth Finance Commission?

(a) Manmohan Singh

(b) Vasant Sathe

(c) Shiv Shankar

(d) K.C. Pant

Ans. (d)

124. Who was the Chairman of 3th Finance Commission?

(a) Dr. Vijay L Kelkar

(b) Dr. C Rangrajan

(c) Dr. A.M. Khusro

(d) Dr. C. Subbarao

Ans. (a)

125. For becoming chairman of finance commission which one is necessary?

(a) He should be from Finance and Banking sector

(b) He should be high level economist

(c) He should be specialist of Jurisdiction matters

(d) In case of public matters, he should be a man of perfection

Ans. (d)

126. The practice of selling goods in a foreign country at aprice below their domestic selling price is called–

(a) ‘Diplomacy’

(b) ‘Discrimination’

(c) ‘Dumping’

(d) ‘Double pricing’

Ans. (c)

127. Indirect taxes by nature are–

(a) Digressive

(b) Regressive

(c) Progressive

(d) Proportional

Ans. (b)

128. Per capita income is equal to:

1. National Income / Total Population of the country
2. National income + population
3. National Income - population
4. National Income x population

Answer: 1. National Income / Total Population of the country

129. A balance of the trade of a country implies that  :

1. Imports are greater than Exports
2. Exports are greater than Imports
3. Both exports and imports are equal
4. Rising Imports and falling Exports

Answer: 2. Exports are greater than Imports

130. The value of  a commodity expressed in terms of money is know as

1. Price
2. Utility
3. Value
4. Wealth

Answer: 1. Price

131. The planning commission of India was established in the year

1. 1947
2. 1949
3. 1950
4. 1952

Answer: 3. 1950

132. Green Revolution was started in

1. 1960
2. 1970
3. 1980
4. 1990

Answer: 1. 1960

133. The term of the Finance commission is

1. 10 years
2. 5 years
3. 6 years
4. 3 years

Answer : 2. 5 years

134. Reserve bank of India was nationalized in

1. 1948
2. 1947
3. 1949
4. 1950

Answer: 3. 1949

135. In a capitalist economy, the prices are  determined by :

1. Demand and Supply
2. Government Authorities
3. Buyers in the market
4. Sellers in the market

Answer:  1. Demand and Supply

136. Which of the following is not a cause of low productivity in Indian agriculture?

1. Co-operative farming
2. Inadequate inputs availability
3. Subdivision and fragmentation of land holdings
4. Poor Finance and marketing

Answer: 1. Co-operative farming

137. Monopolist resorts is an essential feature of

1. Elasticity of supply
2. Elasticity of  demand
3. Law of demand
4. Law of supply

Answer: 2. Elasticity of demand

138. Economics planning is an essential feature of

1. Socialist economy
2. Capitalist economy
3. Mixed economy
4. Dual Economy

Answer: 1. Socialist economy

139. The national Policy for empowerment of women was adopted in the year ;

1. 2001
2. 2005
3. 1991
4. 1995

Answer: 1. 2001

140. Which revenue earned by the union govt. is not distributed among state governments?

1. Excise duty
2. Income tax
3. Custom duty
4. None of these

Answer: 3. Custom duty

141. Which among of the following is direct tax?

(a)Sales Tax

(b)Excise Tax

(c)Wealth Tax

(d)Entertainment Tax

Ans. (c)

142. Which among of the following is largest source of income for central govt.?

(a)Direct Taxes

(b)Custom Duty

(c)Excise Duty

(d)Entertainment Tax

Ans. (a)

143. Which among of the following is not direct tax?

(a)Income Tax

(b)Property Tax

(c)Gift Tax

(d)Sales Tax

Ans. (d)

144. The Example of Sales tax is-

(a) Corporate Tax

(b)Direct Tax

(c)Indirect Tax

(d)Welfare Tax

Ans. (c)

145. Which of the following tax is imposed by state govt.?

(a)Entertainment Tax

(b)Property Tax

(c)Income Tax

(d)Corporate Tax

Ans. (a)

146. Taxes are called as Regressive when-

(a)None of these

(b)It causes same burden on rich and poor

(c)Fewer burdens on poor as compared to rich

(d)More burden on poor as compared to rich

Ans. (c)

147. In case of direct tax, impact of tax & incidence of tax is–

(a)On two different person

(b)On same person

(c)Any other person

(d)On that department which called tax.

Ans. (b)

148.Who was the Chairman of tenth Finance Commission?

(a)Manmohan Singh

(b)Vasant Sathe

(c)Shiv Shankar

(d)K.C. Pant

Ans. (d)

149.Who was the Chairman of 3th Finance Commission?

(a)Dr. Vijay L Kelkar

(b)Dr. C Rangrajan

(c)Dr. A.M. Khusro

(d)Dr. C. Subbarao

Ans. (a)

150.For becoming chairman of finance commission which one is necessary?

(a)He should be from Finance and Banking sector

(b)He should be high level economist

(c)He should be specialist of Jurisdiction matters

(d)In case of public matters, he should be a man of perfection

Ans. (d)

151. Which among of the following is not a ‘canon of taxation’ according to Adam Smith?

(a)Canon of certainty

(b)Canon of simplicity

(c)Canon of convenience

(d)Canon of economy inefficiency

Ans. (b)

152.VAT was firstly implemented in–

(a)Germany

(b)Spain

(c)France

(d)Russia

Ans.(c)

153. CENVAT is related with–

(a)Service Tax

(b)Wealth Tax

(c)Excise duty

(d)Selling Tax

Ans. (c)

154.‘Value - added’ is equal to–

(a)Output minus the Inputs

(b)Reconstruction profit

(c)Gross profit

(d)Investment profit

Ans. (a)

155.Finance Commission is organized.

(a) Every year.

(b)After every four year

(c)After every two year

(d)After every five year

Ans. (d)

156. Which of the statements is correct about India’s National Income?

(a)Percentage share of agriculture is higher than services.

(b)Percentage share of industry is higher than agriculture.

(c)Percentage share of services is higher than industry.

(d)Percentage share of services is higher than agriculture and industry put together.

Ans. (d)

157.In Center – State financial relation in India, Gadgil formula is used in–

(a) Division of tax revenue

(b) Formulation of the policy for fresh borrowings

(c) Writing off state’s indebtedness to the centre

(d) Allocating Central Plan assistance between States

Ans. (a)

158.Which authority decides about the states’ share in central taxes?

(a)Finance Commission

(b)Planning Commission

(c)Election Commission

(d)Finance Ministry

Ans. (a)

159.The practice of selling goods in a foreign country at a price below their domestic selling price is called–

(a)‘Diplomacy’

(b)‘Discrimination’

(c)‘Dumping’

(d)‘Double pricing’

Ans. (c)

160.Indirect taxes by nature are–

(a)Digressive

(b)Regressive

(c)Progressive

(d)Proportional

Ans. (b)

161.Taxation is a tool of–

(a)Monetary Policy

(b)Fiscal Policy

(c)Price Policy

(d)Wage Policy

Ans. (b)

162.The Fringe Benefit Tax was introduced in the budget of–

(a)2003-04

(b) 2004-05

(c) 2005-06

(d)2006-07

Ans. (c)

163.The government set-up a committee headed by the Chairman. Central Board of Direct Taxes sometime back to go into–

(a)Codification of tax laws

(b)The entire structure of tax laws including the question of imposition of bank tax

(c)The concerns of the foreign investors in India with regards to taxation matters

(d)Aspects of generation of black money, its transfer abroad and bringing back such money into India’s Legitimate Financial System.

Ans. (d)

164.Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states?

(a)Expenditure Tax and Gift Tax

(b)Additional duties of excise in lieu of sales tax

(c)Stamps and Registration

(d)Taxes on Advertisement

Ans. (d)

165.Which of the following is not the source of the revenue of Central Government?

(a)Income Tax

(b)Corporate Tax

(c)Agricultural Income Tax

(d)Excise Duty

Ans. (c)

166. The Report of Vijay Kelkar Committee relates to–

(a)Trade reforms

(b)Centre-state financial relations

(c)Disinvestment in public sector enterprises

(d)Tax reforms

Ans. (d)

167.Which of the following taxes is not collected by the Central Government?

(a)Income Tax

(b)Customs Duty

(c)Professional Tax

(d)Excise Duty

Ans. (c)

168.Excise duty on a commodity is payable with reference to its–

(a)Production

(b)Production and Sale

(c)Production and Transportation

(d)Production, Transportation and Sale

Ans. (a)

169. If the tax rate increases with the higher level of income, it shall be called–

(a)Proportional Tax

(b)Progressive Tax

(c)Lump sum Tax

(d)Regressive Tax

Ans. (b)

170.Which of the following sets belong to Central tax?

(a)Excise Duty, Sales Tax and Customs Duty

(b)Excise Duty, Customs Duty and Income Tax.

(c)Income Tax, Customs Duty and House Tax

(d)Customs Duty, Entertainment tax and Income Tax

Ans. (b)

175.Which of the following taxes is not shared between the union and the states?

(a)Income Tax

(b)Excise Duty

(c)Corporation Tax

(d)Sales Tax

Ans. (d)

176.Which of the following taxes is levied by the Union and appropriated and planned by the states?

(a)Service Tax

(b)Stamp Duty

(c)Property Tax

(d)Passenger and Freight Duty

Ans. (b)

177.Interest on public debt is part of–

(a)Transfer payments by the enterprises

(b)Transfer payments by the government

(c)National income

(d)Interest payments by households

Ans. (b)

178. Which of the following taxes is such which does not cause rise in price?

(a)Import Duty

(b)Income Tax

(c)Octoroi

(d)Sales Tax

Ans.(b)

179. Who among the following has suggested tax on expenditure?

(a)Dalton

(b)Kaldor

(c)Musgrave

(d)Gautam Mathur

Ans. (b)

180. Which amidst the following taxes collected by the Union is not mandated to be assigned to the states?

(a)Terminal taxes on goods or passengers carried by railway, sea or air.

(b)Taxes on railway fares and freights

(c)Taxes on consignment of goods

(d)Service Tax

Ans. (d)

189. The main source of revenue for a State Government in India is–

(a)Sales Tax

(b)Excise Duty

(c)Income Tax

(d)Property Tax

Ans. (a)

190. The proceeds of Income tax go to–

(a)Central Government

(b)State Government

(c)Centre and States

(d)Corporation Authorities

Ans. (c)

191. How does the consumer benefit with VAT?

(a)It removes tax on tax and thus reduces price rise

(b)Reduces the cost of production

(c)With the abolition of the sales tax

(d)Due to the exemption of small businesses from the tax within certain limits prescribed by the state

Ans. (a)

192.The receipts of which of the following taxes/duties are not shared with the states?

(a)Tax on income except agriculture

(b)Corporation tax

(c)Surcharge on Income tax

(d)Capital gain tax

Ans. (a)

193. The duties levied on alcoholic liquors, narcotic drugs and opium come under–

(a)Central Excise Duty

(b)Land Revenue

(c)State Excise Duty

(d)General Sales Tax

Ans. (a)

194. the most important source of revenue for the states in India is–

(a)Corporation Tax

(b)Income Tax

(c)Excise Duties

(d)Sales Tax

Ans. (d)

195. Parallel economy emerges due to–

(a)Tax Avoidance

(b)Tax Evasion

(c)Tax Compliance

(d)Tax Estimation

Ans. (b)

196. The tax levied on gross sales revenue from business transactions is called–

(a)Turnover Tax

(b)Sales Tax

(c)Capital Gains Tax

(d)Corporation Tax

Ans. (a)

197.A tax is characterized by horizontal equity if its liability is–

(a)Proportional to the income of tax payers

(b)Similar for tax payers in similar circumstances

(c)Proportional to the expenditure of tax payers

(d)The same for every tax payer

Ans. (a)

198. Which authority recommends the principles governing the grants in aid of the revenues of the states out of the Consolidated Fund of India?

(a)Public Accounts Committee

(b)Union Ministry of Finance

(c)Finance Commission

(d) Inter-State Council

Ans. (c)

199. Buoyancy of a tax is defined as–

(a)Percentage increase in tax revenue/percentage increase in tax base

(b)Increase in tax revenue/percentage increase in tax coverage

(c)Increase in tax revenue/increase in tax base

(d)Percentage increase in tax revenue/increase in tax coverage

Ans. (c)