10 August
August 10, 2020 മലയാളത്തിൽ പരിശീലിക്കാൻ ഇവിടെ ക്ലിക്ക് Objective Type Exam Note in English
Chapter 11 The Government Functions and Scope

Practice Exam

Question

1) The priciple of exclusion is applicable in case of 

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Public goods

Private goods

Both of above

None of these

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Question

2) If MPC is 0.8, then tax multiplier is

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1

8

5

80

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Question

3) In the given equation C = 20 + .8Y,  income is 100. Then consumption will be 

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20

.8

20.8

100

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Question

4) Revenue receipts 

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Reduce assets

Increase assets

Neither increase nor reduce

None of these

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Question

5) The expenditures which neither create assets nor reduces liabilities are called

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Revenue expenditure

Capital expenditure

Revenue receipts

None of these

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Question

6) Fiscal deficit reduced by interest payment is 

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Primary deficit

Total deficit

Monetized deficit

Trade deficit

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Question

7) Which of the following are the functions of government ?

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Allocation

Distribution

Stabilization

All of the above

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Question

8) Goods in which  the consumption should be encouraged are called 

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Public good

Private good

Club good

Merits good

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9) Which of the following is an indirect tax ?

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Excise duty

Sales tax

Customs duty

All of these

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Question

10) Balnced budget multiplier is 

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One

Less than one

More than one

Zero

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Question

11) Which of the following is the AD in a closed economy with government ?

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C + I + G + X

C + G + NX

C + I + G - X

C + I + G

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Question

12) Excess of total expenditure over total income excluding borrowing is

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Revenue deficit

Fiscal deficit

Primary deficit

Monetized deficit

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Question

13) Select the odd one

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Surplus budget

Balanced budget

Supplementary budget

Deficit budget

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Question

14) Autonomous expenditure, A = 100 and MPC is 0.75 , equilibrium income is

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4000

400

300

133.3

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Question

15) Which of the following is not a major item of revenue expenditure ?

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Defence service 

Acqusition of land

Interest payment

Subsidies

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Question

16) Select the odd one

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Income tax

Sales tax

Fees

Customs duty

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Question

17) The borrowing of the government to finance deficit in budget leads to

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Revenue

Public debt

Taxation

None of these

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Question

18) Government finances deficit in budget by 

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Taxation

Borrowings

Printing currency 

All of the above

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Question

19) The policy of the government regarding public expenditure, taxation, borrowing and revenue are called

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Fiscal policy 

Budget 

Capital receipt

None of these

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Question

20) The deliberate action in fiscal policy taken by the government to stablize the economy is called 

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Fiscal policy

Discretionary Fiscal policy

Automatic stablizer

Budget

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This practice test is prepared by UAH