Development Of Federal Finance In India(Macro Economics ) Questions and Answers

Question 1. ‘Quota’ is
  1.    Tax levied on imports
  2.    Imports of capital goods
  3.    Limit on the quantity of exports
  4.    Limit on the quantity of imports
Explanation:-
Answer: Option D. -> Limit on the quantity of imports


Question 2. The ‘Canons of Taxation’ were propounded by
  1.    Dalton
  2.    J. M. Keynes
  3.    Adam Smith
  4.    Edwin Canon
Explanation:-
Answer: Option C. -> Adam Smith


Question 3. ‘PROTECTION’ means
  1.    Protection to home industries
  2.    Restrictions imposed on import trade
  3.    No free exchange of goods and services between two countries
  4.    All of the above
Explanation:-
Answer: Option D. -> All of the above


Question 4. Agricultural income tax is a source of revenue to
  1.    State Government
  2.    Central Government
  3.    Local Administration
  4.    Centre and State Governments
Explanation:-
Answer: Option A. -> State Government


Question 5. Beyond a certain point deficit financing will certainly lead to
  1.    Inflation
  2.    Deflation
  3.    Recession
  4.    Economic stagnation
Explanation:-
Answer: Option A. -> Inflation


Question 6. The tax levied on gross sales revenue from business transactions is called
  1.    Sales Tax
  2.    Turnover Tax
  3.    Corporation Tax
  4.    Capital Gains Tax
Explanation:-
Answer: Option B. -> Turnover Tax


Question 7. The duties levied on alcoholic liquors, narcotic drugs and opium come under-
  1.    Land Revenue
  2.    State Excise Duty
  3.    General Sales Tax
  4.    Central Excise Duty
Explanation:-
Answer: Option B. -> State Excise Duty


Question 8. Multinational Corporation is also called
  1.    Finance Corporation
  2.    Trading Corporation
  3.    Trans-national Corporation
  4.    International Corporation
Explanation:-
Answer: Option C. -> Trans-national Corporation


Question 9. Corporation tax is a tax imposed on
  1.    The corporate properties
  2.    The net incomes of the companies
  3.    The utilities provided by the Corporation
  4.    Tax imposed by the Corporation on individual properties
Explanation:-
Answer: Option B. -> The net incomes of the companies


Question 10. Parallel economy emerges due to
  1.    Tax Estimation
  2.    Tax Compliance
  3.    Tax Evasion
  4.    Tax Avoidance
Explanation:-
Answer: Option C. -> Tax Evasion


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