MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 8 General Knowledge Indian Economy Quiz 10 - MCQExams.com
CBSE
Class 8 General Knowledge
Indian Economy
Quiz 10
Which of the following sentences is/are true about the salient features of National Agricultural Policy?
6% growth rate per annum for the next two decades
Consolidation of holdings in all states of the nation
Promoting private investments in agriculture
To promote biotechnology
To provide insurance umbrella for crops to farmers
Choose the right answer using the codes given below
Report Question
0%
1,4 and 5
0%
3, 4 and 5
0%
2, 3, 4 and 5
0%
All of these
Consider the following statements
The first Petrochemical Industry in India's started with the establishment of National Organic Chemical Industry Limited in decades sixties.
The real importance of Petrochemical industry in India shown with the establishment of Indian Petrochemicals Corporation Limited (IPCL) at Baroda.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Match List I with List II and select the correct answer using the codes given below the lists:
List I
(Term)
List II
(Explanation)
A. Fiscal deficit
1. Excess of total expenditure over receipts
B. Budget deficit
2. Excess of revenue expenditure
C. Revenue deficit
3. Excess of total expenditure over total receipts less borrowings
D. Primary deficit
4. Excess of total expenditure over total receipts less borrowings and interest payments
Report Question
0%
A-3 B-1 C-2 D-4
0%
A-2 B-3 C-4 D-1
0%
A-4 B-3 C-1 D-2
0%
A-4 B-1 C-3 D-2
Explanation
A. Fiscal deficit - Excess of total expenditure over total receipts less borrowings
B. Budget deficit - Excess of total expenditure over receipts.
C. Revenue deficit - Excess of revenue expenditure.
D. Primary deficit - Excess of total expenditure over total receipts less borrowings and interest payments.
Fiscal deficit in the Union Budget means ___________.
Report Question
0%
Difference between current expenditure and current revenue
0%
Net Increase in Union Government's borrowings from the Reserve Bank of India
0%
The sum of budgetary deficit and net increase in internal and external borrowing
0%
The sum of monetised deficit and budgetary deficit
Explanation
The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.
Match List I with List II and select the correct answer using the codes given below the lists:
List I
List II
A. Income Tax
Levied and collected by the Central Government
B. Corporation
Levied and collected by the Central Government and shared by the State Government
C. Professional Tax
3. Levied by the Tax Central Government but collected and appropriated by the State Government
D. Stamp Duties
Levied, collected and retained by the State Government.
Report Question
0%
A-2 B-4 C-3 D-1
0%
A-2 B-3 C-4 D-1
0%
A-2 B-1 C-4 D-3
0%
A-4 B-1 C-3 D-2
Explanation
A. Income Tax - Levied and Tax collected by the Central Government and shared between the Centre and the State Government.
B. Corporation - Levied and collected and retained by the Central Government.
C. Professional Tax - Levied and collected and retained by the State Government.
D. Stamp Duties - Levied by the Tax Central Government but collected and appropriated by the State Government.
Which one of the following sectors of the Indian Economy established a committee under Sam Pitroda to implement smart grid to predict and intelligently respond to the behaviour and actions of all users connected to it?
Report Question
0%
Telecom sector
0%
Electricity sector
0%
Transport sector
0%
Banking sector
Which one of the following forms the important receipts of the Capital Budget?
Report Question
0%
Net market borrowing
0%
Net small savings
0%
Provident funds collections
0%
All of the above
Explanation
Capital Budget consists of capital receipts and payments. It also incorporates transactions in the public account. Capital receipts are loans raised by the government from the public which are called market loans, borrowings by the government from the Reserve Bank and other parties through sale of treasury bills, loans received from foreign bodies and governments, and recoveries of loans granted by the central government to state and union territory governments and other parties. Net small savings and Provident funds collections form a part of the Public account. Thus, the answer is all of the above.
Consider the following statements:
Revenue budget deals with receipts from taxation and non-tax sources and the expenditure met out from these sources.
Net recoveries of loans and advances to states are public sector enterprises form the revenue receipts of the government.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither I nor 2
Explanation
Revenue budget consists of the revenue receipts of the government (tax revenues and other revenues) and the expenditure met from these revenues. Tax revenues comprise proceeds of taxes and other duties levied by the Union. Other revenues are receipts of the government mainly consisting of interest and dividend on investments made by the government, and fees and receipts for other services rendered by the government. Revenue expenditure is expenditure for the normal running of government departments and various. Net recoveries of loans and advances to states are public sector enterprises form a part of Capital receipts in the Capital budget.
Consider the following statements:
The proceed of personal income tax is shared between the Central and State Governments.
The proceeds of the central excise duty is not shared between the Central and State Governments.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Explanation
Taxes on income (other than agricultural income and corporation tax) shall be levied and collected by the centre but compulsorily distributed between the centre and the states in such manner as prescribed by the president on the recommendations of the Finance Commission. The obligatory sharing of income tax is provided by Article 270 of the Constitution. As per Article 272 of the Constitution, the Central Excise duty other than on medicinal and toilet preparations shall be levied and collected by the centre but the Parliament by law can divide it between states and centre.
Fiscal deficit in the budget means __________.
Report Question
0%
revenue deficit plus the net borrowings of the governments
0%
budgetary deficit plus the net borrowings of the government
0%
capital deficit plus revenue deficit
0%
primary deficit minus Capital deficit
Explanation
Budget deficit is the difference between total receipts and total expenditure. If borrowings and other liabilities are added to budget deficit, we get Fiscal deficits.
Which one of the following acts is going to be replaced by the Direct Taxes Code (DTC) in India?
Report Question
0%
Income Tax Act 1961
0%
Wealth Tax Act 1957
0%
Custom Duty Act 1966
0%
Both 'a' and 'b'
Explanation
DTC will revise, consolidate and simplify the structure of direct tax laws in India into a single legislation. The DTC, when implemented will replace the Income-tax Act, 1961 (ITA), and other direct tax legislations like the Wealth Tax Act, 1957. The Direct Taxes Code (DTC) Bill was introduced in Parliament in 2010 but lapsed with the dissolution of the 15th Lok Sabha. Recently new task force was setup to re-draft the Direct Taxes Code.
Value-added tax is ___________.
Report Question
0%
an ad valorem tax on domestic final consumption collected at all stages between production and point of final sale
0%
an ad valorem tax on final consumption collected at the manufacturing level
0%
tax on final consumption collected at the consumption stage
0%
a special tax levied by the states on products from other states
Explanation
A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at the point of retail sale. In other words, its is an ad valorem tax on domestic final consumption collected at all stages between production and point of final sale.
The income elasticity of demand for inferior goods is
Report Question
0%
less than one
0%
less than zero
0%
equal to one
0%
greater than one
Consider the following statements
In Indian economy, the employment generated by the private sector is more than that of the public sector.
In Indian economy, the growth rate of public sector in the industrial areas like heavy and basic industries, machine goods sector etc is more than that of the private sector.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements:
Value-added tax was Introduced for the first time in France.
Value-added tax is levied on the added value that results from each exchange.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Explanation
VAT is a type of consumption tax placed on a product whenever value is added at a stage of production and at final sale. It was introduced for the first time in France in 1954.
Consider the following statements
Disinvestment is using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units rather than receiving the distributions in cash.
Disinvestment refers to selling of equity of a Public Sector Undertaking (PSU) to a private organisation or to general public.
Which of the above statements is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
None of them
Consider the following taxes:
Sales tax
Value-added tax
Property tax
Which of the taxes given above are Ad valorem tax/taxes?
Report Question
0%
1 and 2
0%
1 and 3
0%
2 and 3
0%
All of those
Explanation
An ad valorem tax (Latin for "according to value") is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT). An ad valorem tax may also be imposed annually, as in the case of a real or personal property tax, or in connection with another significant event (e.g. inheritance tax, expatriation tax, or tariff).
Minimum Alternate Tax (MAT) is imposed by the Indian Government in addition to which one of the following tax?
Report Question
0%
Personal Income tax
0%
Corporation tax
0%
Service tax
0%
Expenditure tax
Explanation
Minimum Alternate Tax (MAT) is a tax effectively introduced in India by the Finance Act of 1987, vide Section 115J of the Income Tax Act, 1961 (IT Act), to facilitate the taxation of ‘zero tax companies’ i.e., those companies which show zero or negligible income to avoid tax. Under MAT, such companies are made liable to pay to the government, by deeming a certain percentage of their book profit as taxable income.
Consider the following statements about the Indian Postal Services of the Indian Postal System?
The first-class mails are airlift without any surcharge.
Second-class mail such as book pockets, registered newspapers and periodicals are carried by surface transport.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Which of the following statements appropriately describes the 'fiscal stimullus'?
Report Question
0%
It is a massive investment by the government in manufacturing sector to ensure the supply of goods to meet the demand surge by rapid economic growth.
0%
It is an intense affirmative action of the government to boost economic activity in the country.
0%
It is the government intensive action of financial institutions to ensure disburement of loans to agriculture and allied sector to promote greater food production and contain food inflation.
0%
None of the above
Explanation
An increase in public spending or a reduction in the level of taxation that might be performed by a government in order to encourage and support economic growth is called as fiscal stimulus. Thus only option A matches this description.
In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?
Report Question
0%
Service tax
0%
Personal income tax
0%
Excise duty
0%
Corporation tax
Explanation
The excise duty's share in the total tax revenue which was 41.3% in 1991-92, declined to 25.1% in 2006-07 It is the most that has declined in the last 5 years. Corporation tax has maximum share followed by income tax.
Service tax was introduced very late so it’s share would obviously increase.
Consider the following statements
India has attained self-sufficiency in almost all consumer goods.
In the term of capital goods, India still depends on the import.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both, 1 and 2
0%
Neither 1 nor 2
Which among the following are the functions of Board for Reconstruction of Public Sector Enterprises?
Studying the proposals of all those units that are referred as sick industries and considering other loss making central PSUs either Suo moto or upon reference by the administrative ministry.
Advise the government on ways and means for strengthening PSUs in general and to make them more autonomous and professional.
Advise the government on disinvestment/closure/sale in respect of chronically sick/loss making companies which cannot be revived.
Attract foreign companies to set up factories in India and invest in the country's infrastructure.
Choose the correct answer using the codes given below
Report Question
0%
1 and 4
0%
2 and 3
0%
1,2 and 4
0%
1,2 and 3
Consider the following Public Sector Enterprises (PSEs)
Steel Authority of India Limited
Indian Oil Corporation Limited
Oil and Natural Gas Corporation Limited
Hindustan Aeronautics Limited
Which of the PSEs given above are Maharatna PSU in India?
Report Question
0%
1,2, 3 and 4
0%
1,2 and 3
0%
2 and 3
0%
2 and 4
Which one of the following is the prescribed investment limit for medium enterprises in the manufacturing sector as per the Micro, small and Medium Enterprises Development Act, 2016?
Report Question
0%
More than Rs 10 lakh and less than Rs 2 crore
0%
More than Rs 2 crore and less than Rs 5 crore
0%
More than Rs 5 crore and less than Rs 10 crore
0%
More than Rs 10 crore
Consider the following statements
The Navaratna status is offered to Public Sector Enterprises by Department of Public Sector Enterprises.
A company must have be a Miniratna and have four independent directors on its board before it can be made a Navaratna.
Which of the above statements is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
None of them
Which one of the following is refer to the use of taxation, public expenditure and the management of public debt in order to achieve certain specified objectives ?
Report Question
0%
Fiscal Policy
0%
Trade Policy
0%
Revenue Policy
0%
None of these
The existence of Parallel economy/black money ____________.
Report Question
0%
makes the economy more competitive
0%
makes the monetary policies less effective
0%
ensure a better distribution of income and wealth
0%
ensure increasing productive investment
Explanation
Black money is a socioeconomic evil. The existence of rapidly growing black money in our economy has grave and disastrous consequences. The existence Black money lead to the creation of a parallel economy. It also makes the monetary policies less effective as the government cannot account properly account for the money which is not formally included in the system.
Which one of the following taxes in India is imposed by the Central Government on the basis of the ability to pay Principle?
Report Question
0%
Wealth tax
0%
Gift tax
0%
Corporate tax
0%
Income tax
The Goods and Services Tax (GST) proposed to be introduced, covers taxes like _________.
Report Question
0%
Trade/Sale Tax
0%
Service Tax
0%
Service tax, Excise
0%
Customs, Excise, VAT
Consider the following statements
Libor rates are calculated for ten different currencies in the world capital market.
Libor rates are calculated for 15 borrowing periods ranging from overnight to one year in the world capital market.
Which of the statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements
Miniratna Public Sector Enterprises can be a joint venture, set subsidiary company or overseas office but with certain conditions.
Till now less than 50 Public Sector Enterprises have been given Miniratna Status by the Indian Government.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements
The custom duty is imposed on the commodities produced in India.
In the last few years, the importance of the custom duty in the revenue receipts of the Central Government is declined.
Which of the statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following taxes
1) Corporation tax 2) Customs duty
3) Excise duty 4) Wealth tax
Which of the statements given above is/are indirect taxes ?
Report Question
0%
Only 1
0%
2 and 4
0%
1 and 3
0%
2 and 3
Consider the following statements
In the last five years, the revenue from the direct taxes constitute more than the half of revenue receipts in India.
The Corporation Tax constitutes more than 50% of the Direct Tax revenue source of the Central Government.
Which of the statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements
In India stamp duties on financial transactions are
Levied and collected by the State Government .
Appropriated by the Union Government.
Which of Me statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
In the context of governance, consider the following
Encouraging foreign direct investment inflows.
Privatisation of higher educational institution.
Down-sizing of bureaucracy.
Selling/offloalding the shares of public sector undertakings.
Which of the above can be used as measures to control the fiscal deficit in India ?
Report Question
0%
1, 2 and 3
0%
2, 3 and 4
0%
1, 2 and 4
0%
2 and 3
The Union Government and RBI decided to introduce one billion pieces of Rs 10 Bank notes made of plastic on a field trial basis In which of the following cities ?
Mumbai
Mysore
Shimla
Jaipur
Select the answer from codes given below.
Report Question
0%
1 and 4
0%
2 and 4
0%
2, 3 and 4
0%
1, 2 and 3
Consider the following statements
In India more than $$90\%$$ of the coal produced is of non-cooking coal type.
International Coal Ventures Limited (ICVL) is a Special Purpose Vehicle (SPV) formed for the acquisition of coal resources abroad.
Which of the statements given above is/are correct?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements
Service Tax is a part of Central Excise in India.
The responsibility of collecting Service Tax lies with the Central Board of Excise and Customs.
Which of the statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements about the Ad valorem tax
Ad valorem tax is a tax based on the value of real estate or personal property
Ad valorem tax is Imposed only at the time of a transaction.
Which of the statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following
Fringe Benefit Tax
Interest Tax
Securities Transaction Tax
Which of the mentioned above are Direct tax/taxes ?
Report Question
0%
1 and 2
0%
1 and 3
0%
2 and 3
0%
All of these
Consider the following statements
The General Sale Tax is imposed on all the goods passing through the hands of dealer on his total turnover.
Selective Sales tax is imposed on the some selective article in the some states.
Which of the statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements
Central Excise duty is imposed on the goods produced in the country.
The commodities on which State Government impose excise duties are exempted from the Central Excise duties.
Which of the statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements
Introduction of service tax in India ushers a major structural change indirect taxes in the form of a wider tax base
Over the years, there has been an increase in the number of services and the rate of service tax leviable by the Central Government. Which of the statements given above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following statements
The Union Government of India passed the General Sales Tax in
The General Sales Tax in the State is imposed at special rate On the sale of goods in Inter-state trade.
Which of the statements give above is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
Consider the following taxes
Personal Income tax
Import duty
Service tax
Which of the taxes given above Is/are Indirect Tax/Taxes ?
Report Question
0%
1 and 2
0%
1 and 3
0%
2 and 3
0%
Only 2
India has experienced persistent and high food inflation in the recent past. What could be the reasons?
As a consequence of increasing incomes, the consumption pattern of the people have undergone a significant change.
The food supply chain has structural constants.
Due to gradual switch over to the cultivation of commercial crops, the area under the cultivation of food grains has steady decreased in the last five years by about 30%.
Which of the statements given above is/are correct ?
Report Question
0%
1 and 2
0%
1 and 3
0%
2 and 3
0%
Only 3
Which of the following statements are correct ?
Ability to pay principle of taxation holds that the amount of taxes people pay should relate to their income or wealth.
The benefit principle of taxation states that individuals should be taxed in proportion to the benefit they receive from government programmes.
A progressive tax takes a larger share of tax from poor families that does from rich families.
Indirect taxes have the advantage of being cheaper and easier to collect.
Select the correct answer using the codes given below
Report Question
0%
1 and 3
0%
2 and 4
0%
1, 2 and 4
0%
1, 2, 3 and 4
Consider the following statements
The Cooporate tax is gradually decreased since the liberalisaion of the Indian economy.
The rates of the Cooporate tax of the domestic and foreign companies are different.
Which of the statements given above Is/are correct ?
Report Question
0%
Only 1
0%
Only 2
0%
Both 1 and 2
0%
Neither 1 nor 2
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 8 General Knowledge Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page
