TNPSC - Economics - MCQ

1.The main source of India’s national income is?

• Industry
• Agriculture
• Forestry
• None of these

Answer: Agriculture

2.Which of the following are the main causes of slow rate of growth of per capita income in India?
a. High capital - output ratio
b. High rate of growth of population
c. High rate of capital formation
d. High level of fiscal deficits

• a, b
• b,c,d
• a,d
• All of the Above

Answer: a,b

3. Among Indian Economists who had done pioneering work on National Income?

• P. N. Dhar
• Jagdish Bhagwati
• V. K. R. V. Rao
• Prof. Shenoi

Answer: V. K. R. V. Rao

4.Which of the following is not a method of estimating national income?

• Income method
• Value - added method
• Expenditure method
• Export - import method

Answer: Export - import method

5. In our country, which of the following affects poverty line the most?

• Level of prices
• Production quantum
• Per capita income
• Quantum of gold reserve

Answer: Per capita income

6.To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare

• The availability of food grains among two sets of people, one rich and the other poor, over different periods of time
• The distribution of income of an identical set of income recipients in different periods of time
• The wholesale price index over different periods of time for different regions
• The distribution of income of different sets of income recipients at a point of time
• Answer: The distribution of income of an identical set of income recipients in different periods of time

7.The largest revenue in India is obtained from?

• Sales Tax
• Direct Taxes
• Excise Duties
• None of these

Answer: Excise Duties

8.Which of the following is not true about ‘vote on-account’?

• It is a budget presented in the Parliament to cover the deficit left by the last budget.
• It does not allow the Government to set for the economic policies of the new plan which starts from April 1.
• It prevents the Government from imposing fresh taxes or withdrawing old one.
• This allows the Government to withdraw an amount for a period with the consent of Parliament.

Answer: It is a budget presented in the Parliament to cover the deficit left by the last budget.

9.Fresh evaluation of every item of expenditure from the very beginning of each financial year is called ?

• Fresh Budgeting
• Deficit Budgeting
• Performance Budgeting
• Zero-based Budgeting

Answer: Zero-based Budgeting

10. Government imposes taxes to ?

• check the accumulation of wealth among the rich
• Run the machinery of state
• uplift weaker sections
• None of these

Answer: Run the machinery of state

11.An ad valorem duty is a tax on the basis of

• the price of a commodity
• the value added
• the advertisement expenditure
• the unit of the commodity

Answer: the price of a commodity

12. The budget is presented to the Parliament on

• the last day of February
• 15th March
• the last day of March
• 1st April

Answer: the last day of February

13.The income tax in India is

• indirect and progressive
• direct and proportional
• direct and progressive
• indirect and proportional

Answer: direct and progressive

14. Fiscal Policy is connected with

• Issue of currency
• exports and imports
• public revenue and expenditure
• None of these

Answer: public revenue and expenditure

15.Which of the following is not a direct tax?

• Wealth Tax
• Income Tax
• Estate Duty
• Sales Tax

Answer: Sales Tax