Economics Important Questions Set-9 for SSC CGL and SSC CHSL Exam

By | January 14, 2018

Economics Important Questions Set-9 for SSC CGL and SSC CHSL Exam

Economics Important Questions Set-9 for SSC CGL and CHSL Exam. Hello readers, today we are sharing Economics Important Questions Set-9 containing 28 Multiple Choice Questions with answers. These questions are very important for SSC CGL, SSC CHSL or 10+2 and other competitive exams. We have collected these questions from various previous years examinations of SSC CGL and SSC CHSL. We hope this will helpful for your comp. exams preparation.

Economics Important Questions Set-9 for SSC CGL and SSC CHSL Exam

Economics Important Questions Set-9 for SSC CGL and SSC CHSL Exam. If you want to receive regular updates on competitive exams and free study materials for SSC CGL, CHSL, CPO, RRB and MTS Exams from us, you can join our Facebook group here or like our Facebook page here.

 

1. Taxation is a tool of–
(a)Monetary Policy
(b)Fiscal Policy
(c)Price Policy
(d)Wage Policy
Ans.(b)
 
2. The Fringe Benefit Tax was introduced in the budget of–
(a)2003-04
(b)2004-05
(c)2005-06
(d)2006-07
Ans.(c)
 
3. The government set-up a committee headed by the Chairman. Central Board of Direct Taxes sometime back to go into–
(a)Codification of tax laws
(b)The entire structure of tax laws including the question of imposition of bank tax
(c)The concerns of the foreign investors in India with regards to taxation matters
(d)Aspects of generation of black money, its transfer abroad and bringing back such money into India’s Legitimate Financial System.
Ans. (d)
 
4.Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states?
(a)Expenditure Tax and Gift Tax
(b)Additional duties of excise in lieu of sales tax
(c)Stamps and Registration
(d)Taxes on Advertisement
Ans.(d)
 
5.Which of the following is not the source of the revenue of Central Government?
(a)Income Tax
(b)Corporate Tax
(c)Agricultural Income Tax
(d)Excise Duty
Ans. (c)
 
6. The Report of Vijay Kelkar Committee relates to–
(a)Trade reforms
(b)Centre-state financial relations
(c)Disinvestment in public sector enterprises
(d)Tax reforms
Ans. (d)
 
7.Which of the following taxes is not collected by the Central Government?
(a)Income Tax
(b)Customs Duty
(c)Professional Tax
(d)Excise Duty
Ans. (c)
 
8.Excise duty on a commodity is payable with reference to its–
(a)Production
(b)Production and Sale
(c)Production and Transportation
(d)Production, Transportation and Sale
Ans.(a)
 
9.If the tax rate increases with the higher level of income, it shall be called–
(a)Proportional Tax
(b)Progressive Tax
(c)Lump sum Tax
(d)Regressive Tax
Ans. (b)
 
10.Which of the following sets belong to Central tax?
(a)Excise Duty, Sales Tax and Customs Duty
(b)Excise Duty, Customs Duty and Income Tax.
(c)Income Tax, Customs Duty and House Tax
(d)Customs Duty, Entertainment tax and Income Tax
Ans.(b)
 
11.Which of the following taxes is not shared between the union and the states?
(a)Income Tax
(b)Excise Duty
(c)Corporation Tax
(d)Sales Tax
Ans. (d)
 
12.Which of the following taxes is levied by the Union and appropriated and planned by the states?
(a)Service Tax
(b)Stamp Duty
(c)Property Tax
(d)Passenger and Freight Duty
Ans. (b)
 
13.Interest on public debt is part of–
(a)Transfer payments by the enterprises
(b)Transfer payments by the government
(c)National income
(d)Interest payments by households
Ans. (b)
 
14. Which of the following taxes is such which does not cause rise in price?
(a)Import Duty
(b)Income Tax
(c)Octoroi
(d)Sales Tax
Ans.(b)
 
15. Who among the following has suggested tax on expenditure?
(a)Dalton
(b)Kaldor
(c)Musgrave
(d)Gautam Mathur
Ans.(b)

Also Read : Economics Important Questions Set-8 for SSC CGL and SSC CHSL Exam

16. Which amidst the following taxes collected by the Union is not mandated to be assigned to the states?
(a)Terminal taxes on goods or passengers carried by railway, sea or air.
(b)Taxes on railway fares and freights
(c)Taxes on consignment of goods
(d)Service Tax
Ans. (d)
 
17.The main source of revenue for a State Government in India is–
(a)Sales Tax
(b)Excise Duty
(c)Income Tax
(d)Property Tax
Ans. (a)
 
18.The proceeds of Income tax go to–
(a)Central Government
(b)State Government
(c)Centre and States
(d)Corporation Authorities
Ans. (c)
 
19. How does the consumer benefit with VAT?
(a)It removes tax on tax and thus reduces price rise
(b)Reduces the cost of production
(c)With the abolition of the sales tax
(d)Due to the exemption of small businesses from the tax within certain limits prescribed by the state
Ans. (a)
 
20.The receipts of which of the following taxes/duties are not shared with the states?
(a)Tax on income except agriculture
(b)Corporation tax
(c)Surcharge on Income tax
(d)Capital gain tax
Ans. (a)
 
21. The duties levied on alcoholic liquors, narcotic drugs and opium come under–
(a)Central Excise Duty
(b)Land Revenue
(c)State Excise Duty
(d)General Sales Tax
Ans. (a)
 
22.State which amongst the following is not true about VAT?
(a)All states have uniform VAT for the same product
(b)State have discretion to fix the rate of tax within the four rates prescribed
(c)It will promote production efficiency of investments
(d)It will make our exports more competitive
Ans.
23.The most important source of revenue for the states in India is–
(a)Corporation Tax
(b)Income Tax
(c)Excise Duties
(d)Sales Tax
Ans. (d)
 
24.Parallel economy emerges due to–
(a)Tax Avoidance
(b)Tax Evasion
(c)Tax Compliance
(d)Tax Estimation
Ans. (b)
 
25. The tax levied on gross sales revenue from business transactions is called–
(a)Turnover Tax
(b)Sales Tax
(c)Capital Gains Tax
(d)Corporation Tax
Ans. (a)
 
26.A tax is characterised by horizontal equity if its liability is–
(a)Proportional to the income of tax payers
(b)Similar for tax payers in similar circumstances
(c)Proportional to the expenditure of tax payers
(d)The same for every tax payer
Ans. (a)
 
27. Which authority recommends the principles governing the grants in aid of the revenues of the states out of the Consolidated Fund of India?
(a)Public Accounts Committee
(b)Union Ministry of Finance
(c)Finance Commission(d)Inter-State Council
Ans. (c)
 
28.Buoyancy of a tax is defined as–
(a)Percentage increase in tax revenue/percentage increase in tax base
(b)Increase in tax revenue/percentage increase in tax coverage
(c)Increase in tax revenue/increase in tax base
(d)Percentage increase in tax revenue/increase in tax coverage
Ans. (c)

 Economics Important Questions Set-9 for SSC CGL and SSC CHSL Exam

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