NATIONAL INCOME, INFLATION , BUDGET, TAXATION AND GDP

Question 1

Which country was the first to implement Goods and Services Tax (GST)?

Answer 1

France 1954

Question 2

If there is a lack of money supply in comparison to the supply of goods and services, then the possible consequence would be_____

Answer 2

Deflation

Question 3

A sustained rise in the general price level in an economy is called ___________.

Answer 3

Inflation

Question 4

A _________ occurs when a government’s total expenditures exceed the revenue that is generated, excluding money from borrowings.

Answer 4

Fiscal Deficit

Question 5

A situtation where the expenditure of the government exceeds its revenue is called:

Answer 5

Budget Deficit

Question 6

A substantial increase in capital expenditure or revenue deficit leads to

Answer 6

Fiscal Deficit

Question 7

When the deficit is high, what happens to prices?

Answer 7

Prices increase

Question 8

What is the economic impact of increase in productivity of firms?

Answer 8

Increase in GDP

Question 9

What is the full form of GSTIN in relation to GST?

Answer 9

Goods and Services Tax Identification Number

Question 10

In which year was the Central Board of Revenue Act in India promulgated?

Answer 10

1963

Question 11

Name the Nobel Prize winning American economist whose report to the US Congress titled “National Income, 1929-35” paved the way for the calculation of Gross Domestic Product (GDP) as the ultimate measure of a country’s overall welfare.

Answer 11

Simon Kuznets

Question 12

Which one of the following brings out an annual publication titled ‘National Accounts Statistics’ containing Gross Domestic Product, Fixed Capital Formation and other macroeconomic aggregates?

Answer 12

The Central Statistics Office (CSO)

Question 13

_____ is the final value of all the finished goods and services produced within a country’s borders in a specific time period.

Answer 13

GDP

Question 14

Which of the following are the major state taxes in India?

Answer 14

Stamp Duty and registration

Question 15

How many members are there in the GST Council?

Answer 15

33

Question 16

What is the meaning of Fiscal Deficit ?

Answer 16

The difference between total revenue and total expenditure of the govt

Question 17

Fiscal Policy is formulated by ______ in India.

Answer 17

Finance Ministry

Question 18

GST council is headed by :

Answer 18

Union Finance Minister

Question 19

GST is NOT applicable on which of the following goods or services?

Answer 19

Alcohol

Question 20

What is the National Gross Domestic Product(GDP)?

Answer 20

The GDP that is calculated at the current market price.

Question 21

In which year, the first Gender Budget Statement appeared in the Union Budget of India?

Answer 21

2005-06

Question 22

The financial resources of an economy cannot be mobilized by_____

Answer 22

Inflation

Question 23

_______ is a type of direct Tax which is levied at the time of sale/purchase of securities through the Indian Stock Exchanges.

Answer 23

Securities Transaction Tax

Question 24

Which among the following indirect taxes is charged by the Central Government?

Answer 24

Service Tax

Question 25

Current Account of Balance of payments does include which of the following

Answer 25

The main components of the current account are: Trade in goods (visible balance) Trade in services (invisible balance), e.g. insurance and services.

Question 26

What is GNP

Answer 26

GNP = GDP + Net factor income from abroad
Explanation: GNP (Gross National Product) = GDP + net property income from abroad. This net income from abroad includes dividends, interest and profit.

Question 27

GST network was formed under _____

Answer 27

Companies Act

Question 28

What is Pigovian tax?

Answer 28

A Pigovian tax is a tax on any market activity that generates negative impacts on the environment or society. The tax is intended to correct an undesirable or inefficient market outcome.

Question 29

Who among the following publishes the Economic Survey of India?

Answer 29

Ministry of finance

Question 30

The aggregate value of goods and services produced in an economy can be calculated by three methods: income method, expenditure method and ______ method.

Answer 30

product / value added

Question 31

A situation where the expenditure of the government exceeds its revenue is known as______.

Answer 31

Deficit Financing

Question 32

Under which Amendment to the Constitution of India was Goods and Services Tax imposed?

Answer 32

101st amendment

Question 33

Which of the following sectors of the economy has the highest share in India’s GDP?

Answer 33

Service

Question 34

Which of the following best defines Net National Income?

Answer 34

GNP – Depreciation

Question 35

Who among the following is responsible for preparation of National Income estimates
in India?

Answer 35

Central Statistical Organization

Question 36

Tax reforms are concerned with the reforms in the government’s taxation and public expenditure policies, which are collectively known as its ______.

Answer 36

fiscal policy