NATIONAL INCOME, INFLATION , BUDGET, TAXATION AND GDP Flashcards
Which country was the first to implement Goods and Services Tax (GST)?
France 1954
If there is a lack of money supply in comparison to the supply of goods and services, then the possible consequence would be_____
Deflation
A sustained rise in the general price level in an economy is called ___________.
Inflation
A _________ occurs when a government’s total expenditures exceed the revenue that is generated, excluding money from borrowings.
Fiscal Deficit
A situtation where the expenditure of the government exceeds its revenue is called:
Budget Deficit
A substantial increase in capital expenditure or revenue deficit leads to
Fiscal Deficit
When the deficit is high, what happens to prices?
Prices increase
What is the economic impact of increase in productivity of firms?
Increase in GDP
What is the full form of GSTIN in relation to GST?
Goods and Services Tax Identification Number
In which year was the Central Board of Revenue Act in India promulgated?
1963
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.
Simon Kuznets
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?
The Central Statistics Office (CSO)
_____ is the final value of all the finished goods and services produced within a country’s borders in a specific time period.
GDP
Which of the following are the major state taxes in India?
Stamp Duty and registration
How many members are there in the GST Council?
33
What is the meaning of Fiscal Deficit ?
The difference between total revenue and total expenditure of the govt
Fiscal Policy is formulated by ______ in India.
Finance Ministry
GST council is headed by :
Union Finance Minister
GST is NOT applicable on which of the following goods or services?
Alcohol
What is the National Gross Domestic Product(GDP)?
The GDP that is calculated at the current market price.
In which year, the first Gender Budget Statement appeared in the Union Budget of India?
2005-06
The financial resources of an economy cannot be mobilized by_____
Inflation
_______ is a type of direct Tax which is levied at the time of sale/purchase of securities through the Indian Stock Exchanges.
Securities Transaction Tax
Which among the following indirect taxes is charged by the Central Government?
Service Tax
Current Account of Balance of payments does include which of the following
The main components of the current account are: Trade in goods (visible balance) Trade in services (invisible balance), e.g. insurance and services.
What is GNP
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.
GST network was formed under _____
Companies Act
What is Pigovian tax?
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.
Who among the following publishes the Economic Survey of India?
Ministry of finance
The aggregate value of goods and services produced in an economy can be calculated by three methods: income method, expenditure method and ______ method.
product / value added
A situation where the expenditure of the government exceeds its revenue is known as______.
Deficit Financing
Under which Amendment to the Constitution of India was Goods and Services Tax imposed?
101st amendment
Which of the following sectors of the economy has the highest share in India’s GDP?
Service
Which of the following best defines Net National Income?
GNP – Depreciation
Who among the following is responsible for preparation of National Income estimates
in India?
Central Statistical Organization
Tax reforms are concerned with the reforms in the government’s taxation and public expenditure policies, which are collectively known as its ______.
fiscal policy
