Question 1

Public Debt means

Accepted Answer

A) Borrowing by a Government from abroad and does not include borrowing from within the country 
B) Borrowing by general public, private individuals or association of individuals from the Government which they need to repay to Government under the prescribed terms and conditions 
C) Borrowing by General Public in the form of loans or advances from the Government, Local Bodies, Government owned financial institutions 
D) Borrowing by a Government from within the country or from abroad, from private individuals or association of individuals or from banking and non-banking institutions 
A) Borrowing by a Government from abroad and does not include borrowing from within the country 
B) Borrowing by general public, private individuals or association of individuals from the Government which they need to repay to Government under the prescribed terms and conditions 
C) Borrowing by General Public in the form of loans or advances from the Government, Local Bodies, Government owned financial institutions 
D) Borrowing by a Government from within the country or from abroad, from private individuals or association of individuals or from banking and non-banking institutions D

Question 2

Which of the following are the causes of public debt of a country?

Accepted Answer

A) War or war-preparedness, including nuclear programmes 
B) To cover the budget deficits on current account 
C) To undertake public welfare schemes 
D) All of the above 
A) War or war-preparedness, including nuclear programmes 
B) To cover the budget deficits on current account 
C) To undertake public welfare schemes 
D) All of the above D

Question 3

When MPS = 0.2, MPC will be

Accepted Answer

A) 0.8 
B) 0.2 
C) 1.2 
D) 20 
A) 0.8 
B) 0.2 
C) 1.2 
D) 20 A

Question 4

Taxes are levied to

Accepted Answer

A) Provide general benefits to the People 
B) Encourage people on unnecessary spending 
C) Accumulate funds for the Government for future use 
D) All of the above 
A) Provide general benefits to the People 
B) Encourage people on unnecessary spending 
C) Accumulate funds for the Government for future use 
D) All of the above

Question 5

Keynes assumed the presence of --------- economy for the fundamental law of consumption

Accepted Answer

A) Capitalistic 
B) Socialistic 
C) Planned 
D) None of the above 
A) Capitalistic 
B) Socialistic 
C) Planned 
D) None of the above

Question 6

Which of the following is not a union tax?

Accepted Answer

A) Taxes on railway freights and fares 
B) Stamp duties on financial documents 
C) Tolls 
D) A and b only 
A) Taxes on railway freights and fares 
B) Stamp duties on financial documents 
C) Tolls 
D) A and b only

Question 7

Which of the following factors contribute to public debt of a country?

Accepted Answer

A) To undertake public welfare 
B) Urge for economic growth 
C) Inefficiencies of public organisations and corruption 
D) All of the above 
A) To undertake public welfare 
B) Urge for economic growth 
C) Inefficiencies of public organisations and corruption 
D) All of the above

Question 8

In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Adam Smith referred this as:

Accepted Answer

A) Invisible hand 
B) Direct Intervention 
C) Collective Spirit 
D) Private Spirit 
A) Invisible hand 
B) Direct Intervention 
C) Collective Spirit 
D) Private Spirit

Question 9

The difference between revenue expenditure and revenue receipts is

Accepted Answer

A) Revenue deficit 
B) Fiscal deficit 
C) Budget deficit 
D) Primary deficit 
A) Revenue deficit 
B) Fiscal deficit 
C) Budget deficit 
D) Primary deficit

Question 10

In the saving function S = -a + 1-b(Y), the term 'b' denotes

Accepted Answer

A) Saving 
B) MPC 
C) MPS 
D) APS 
A) Saving 
B) MPC 
C) MPS 
D) APS

Question 11

The difference between total expenditure and total receipts is

Accepted Answer

A) Fiscal deficit 
B) Budget deficit 
C) Primary deficit 
D) Revenue deficit 
A) Fiscal deficit 
B) Budget deficit 
C) Primary deficit 
D) Revenue deficit

Question 12

Which one of the following economists introduced the principle of "Maximum Social Advantage"?

Accepted Answer

A) Alfred Marshall 
B) John Maynard Keynes 
C) Karl Marx 
D) Hugh Dalton 
A) Alfred Marshall 
B) John Maynard Keynes 
C) Karl Marx 
D) Hugh Dalton

Question 13

In the equation C = 60 + 0.6 Y, MPC is

Accepted Answer

A) 60 
B) 0.6 
C) 0 
D) 1 
A) 60 
B) 0.6 
C) 0 
D) 1

Question 14

Debt obligations of the government that have maturities of one year or less is normally called

Accepted Answer

A) Commercial Papers 
B) Commercial Deposits 
C) Treasury Bills 
D) Certificate of Deposits 
A) Commercial Papers 
B) Commercial Deposits 
C) Treasury Bills 
D) Certificate of Deposits

Question 15

Which of the following is a union tax?

Accepted Answer

A) Corporation tax 
B) Taxes on agricultural income 
C) Capitation taxes 
D) Land revenues 
A) Corporation tax 
B) Taxes on agricultural income 
C) Capitation taxes 
D) Land revenues

Question 16

In the linear consumption function C = a + b(Y), coefficient 'a' denotes

Accepted Answer

A) MPC 
B) APC 
C) Autonomous consumption 
D) Induced consumption 
A) MPC 
B) APC 
C) Autonomous consumption 
D) Induced consumption

Question 17

The tax on net income of companies is

Accepted Answer

A) Personal income tax 
B) Interest tax 
C) Wealth tax 
D) Corporate tax 
A) Personal income tax 
B) Interest tax 
C) Wealth tax 
D) Corporate tax

Question 18

Which of the following statement is INCORRECT with regard to the burden of public debt of a country?

Accepted Answer

A) If the public debt is taken for productive purposes it will not be a burden on the economy. 
B) If the public debt is taken for unproductive purposes, it will impose both money burden and real burden on the economy. 
C) In case of Internal Debt, the direct money burden on the economy is huge as transfer of wealth happens within the community 
D) In the case of External debt, the amount of repayment of interest and principal represents the direct money burden on the community 
A) If the public debt is taken for productive purposes it will not be a burden on the economy. 
B) If the public debt is taken for unproductive purposes, it will impose both money burden and real burden on the economy. 
C) In case of Internal Debt, the direct money burden on the economy is huge as transfer of wealth happens within the community 
D) In the case of External debt, the amount of repayment of interest and principal represents the direct money burden on the community

Question 19

Who propounded Psychological law of consumption

Accepted Answer

A) Adam Smith 
B) Ricardo 
C) Keynes 
D) Pigou 
A) Adam Smith 
B) Ricardo 
C) Keynes 
D) Pigou

Question 20

The tax levied by the union government on income of individuals is known as

Accepted Answer

A) Personal income tax 
B) Interest tax 
C) Wealth tax 
D) Corporation tax 
A) Personal income tax 
B) Interest tax 
C) Wealth tax 
D) Corporation tax

Public Debt means

Which of the following are the causes of public debt of a country?

When MPS = 0.2, MPC will be

Taxes are levied to

Keynes assumed the presence of --------- economy for the fundamental law of consumption

Which of the following is not a union tax?

Which of the following factors contribute to public debt of a country?

In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Adam Smith referred this as:

The difference between revenue expenditure and revenue receipts is

In the saving function S = -a + 1-b(Y), the term 'b' denotes

The difference between total expenditure and total receipts is

Which one of the following economists introduced the principle of "Maximum Social Advantage"?

In the equation C = 60 + 0.6 Y, MPC is

Debt obligations of the government that have maturities of one year or less is normally called

Which of the following is a union tax?

In the linear consumption function C = a + b(Y), coefficient 'a' denotes

The tax on net income of companies is

Which of the following statement is INCORRECT with regard to the burden of public debt of a country?

Who propounded Psychological law of consumption

The tax levied by the union government on income of individuals is known as

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

National Income and Final Goods

Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

Money and Inflation

Macroeconomic Concepts and Theories

Understanding Public Finance and Business Cycles

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Exam 7: Economics and Public Finance

Public Debt means

Which of the following are the causes of public debt of a country?

When MPS = 0.2, MPC will be

Taxes are levied to

Keynes assumed the presence of --------- economy for the fundamental law of consumption

Which of the following is not a union tax?

Which of the following factors contribute to public debt of a country?

In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Adam Smith referred this as:

The difference between revenue expenditure and revenue receipts is

In the saving function S = -a + 1-b(Y), the term 'b' denotes

The difference between total expenditure and total receipts is

Which one of the following economists introduced the principle of "Maximum Social Advantage"?

In the equation C = 60 + 0.6 Y, MPC is

Debt obligations of the government that have maturities of one year or less is normally called

Which of the following is a union tax?

In the linear consumption function C = a + b(Y), coefficient 'a' denotes

The tax on net income of companies is

Which of the following statement is INCORRECT with regard to the burden of public debt of a country?

Who propounded Psychological law of consumption

The tax levied by the union government on income of individuals is known as

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

National Income and Final Goods

Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

Money and Inflation

Macroeconomic Concepts and Theories

Understanding Public Finance and Business Cycles

Filters