Top 150+ Solved General Economics 2 MCQ Questions Answer
Q. When demand for US dollars increases under flexible exchange rate system, then:
a. The rupee depreciates
b. The dollar appreciates
c. Both A and B
d. None of the above
Q. An economic transaction is entered in the balance of payment as a credit, if it leads to:
a. Receipt of payment from foreigners
b. Either the receipt of payment or making of payment
c. A payment to foreigners
d. Neither the receipt nor making of a payment
Q. Remittances foe abroad is included in which account of balance of payment:
a. Current account
b. Capital account
c. Visible account
d. Official account
Q. Assertion (A) : Devaluation in general is resorted to increase the exports. Reason (R) : It makes exports cheaper.
a. Both (A) and (R) are correct
b. (A) is correct, but (R) is not correct.
c. Both (A) and (R) are incorrect
d. A) is incorrect, but (R) is correct
Q. The continuous deficit in the balance of payments of India is due to
a. Continued rise in imports
b. Slow rise in exports
c. Exchange rate volatility
d. All of the above
Q. The ongoing weakening of Rupee against Dollar will cause
a. Indian exports to US will rise
b. Indian exports to US will fall
c. Import from US to India will remain constant
d. Indian exports to US remain constant
Q. If the Rupees per Dollar($) exchange rate changes from Rs 44 to 46 in an year by the market force, it implies
a. Appreciation of $
b. Depreciation of $
c. Devaluation of $
d. Revaluation of $
Q. Public finance is said to be:
a. Science of income and expenditure
b. Science of money and cost
c. Science of demand and supply of money.
d. Science of taxes and spending.
Q. All the accounts of public authority are subject to:
a. Conceal
b. Audit and inspection
c. Publicity
d. None of above.
Q. Price revenue is popularly known as:
a. Market borrowing
b. Government borrowing
c. Commercial revenue
d. Surplus of public undertakings
Q. The basic principle of Public Finance is:
a. Maximum social advantage
b. Welfare of the government
c. Welfare of the individual
d. All the above.
Q. A tax is:
a. Voluntary contribution with direct benefit
b. Compulsory contribution with indirect benefit.
c. Compulsory Contribution with no direct benefit.
d. None of the above.
Q. Which of the following are direct taxes:
a. Gift tax
b. Corporation tax
c. Income tax
d. All of the above.
Q. From the following which is not a direct tax:
a. Tax income
b. Tax on wealth
c. Tax on expenditure
d. Tax on entertainment