GK QUESTIONS ON ECONOMICS - 2

27. During periods of inflations, tax rates should

  1. Increase
  2. Decrease
  3. Remain constant
  4. Fluctuate

28. Which is the biggest tax paying sector in India?

  1. Agricultural sector
  2. Industrial sector
  3. Transport sector
  4. Banking Sector

29. Economics is what it ought to be. This statement refers to

  1. Normative Economics
  2. Positive Economics
  3. Monetary Economics
  4. Fiscal Economics

30. The excess of price a person is to pay rather than forego the consumption of the commodity is called

  1. Price
  2. Profit
  3. Producer Surplus
  4. Consumer Surplus

31. A want becomes a demand only when it is backed by the

  1. Ability to purchase
  2. Necessity to buy
  3. Desire to buy
  4. Utility of the product

32. The 'break-even' point is where

  1. marginal revenue equals marginal cost
  2. average revenue equals average cost
  3. total revenue equals total cost
  4. none of the above

33. Rate of interest is determined by

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

34. The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called?

  1. FDI
  2. Portfolio Investment
  3. NRI Investment
  4. Foreign Indirect Investment

35. An individual’s actual standard of living can be assessed by

  1. Gross National Income
  2. Net National Income
  3. Per Capita Income
  4. Disposable Personal Income

36. When there is an official change in the exchange rate of domestic currency, then it is called

  1. Appreciation
  2. Depreciation
  3. Revaluation
  4. Deflation

37. Inflation redistributes income and wealth in favour of

  1. Pensioners
  2. Poor
  3. Middle class
  4. Rich

38. The fringe benefit tax was introduced in the budget of

  1. 2003-04
  2. 2004-05
  3. 2005-06
  4. 2006-07

39. Excise Duty is a tax levied on :

  1. Commodities that are exported
  2. Commodities that are imported
  3. Both the exported and imported commodities
  4. Commodities that are produced and consumed within the country

40. Who coined the term "Hindu rate of growth for Indian economy"?

  1. A.K. Sen
  2. Kirit S. Parikh
  3. Raj Krishna
  4. Montek Singh Ahluwalia

41. Which one of the following is NOT an example of indirect tax?

  1. Sales tax
  2. Excise duty
  3. Customs duty
  4. Expenditure tax

42. 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

43. Interest on public debt is a part of -

  1. Transfer payments by the enterprises
  2. Transfer payments by the govt.
  3. National income
  4. Interest payments by house-holds