Fundamentals of Economics
Test your knowledge of core economic concepts including money supply, national income accounting, taxation, business cycles, and economic development indicators
Questions
M1 includes
- mutual funds
- credit cards
- checkable deposits
- money market instruments
- stock
Which of the following is not a form of tax revenue?
- Customs
- Excise duty
- License fee
- Sales tax
- Income tax
The annual yield from which of the following Union Government taxes is the highest?
- Custom duties
- Corporation tax
- Inheritance tax
- Excise duties
- Wealth tax
Which of the following is the best indicator of economic development of any country?
- Agriculture
- National income
- Gross domestic product
- Per capita income
- Net domestic product
When the current expenditure of the government exceeds its current income, it is known as
- budget deficit
- fiscal deficit
- revenue deficit
- primary deficit
- budget surplus
Which sector is engaged in production of services?
- Tertiary sector
- Primary sector
- Secondary sector
- Joint sector
- Public sector
Which among the following does not affect credit creation power of Commercial Banks?
- Cash reserve ratio
- Statutory liquidity ratio
- C adequacy ratio
- Currency deposit ratio
- Repo rate
While computing Gross National Product (GNP), which among the following is not required?
- Net foreign investment
- Private investment
- Per capita income of citizens
- Purchase of goods by government
- Disposable income
The period in which real GDP of the business cycle is increasing is called
- expansion
- peak
- recession
- trough
- stagflation
Which among the following is not shared by the Centre and the States?
- Sales tax
- Corporation tax
- Income tax
- Union excise duties
- VAT
What do we call the sum of NNPMP and net current transfers from abroad?
- Gross national disposable income
- Discretionary income
- Personal disposable income
- Personal income
- Net national disposable income
The definition of scarcity in economics was given by
- Adam Smith
- Marshall
- Robbins
- Robertson
- Keynes
Induced investment is related to
- marginal propensity to consume
- marginal propensity to save
- marginal efficiency of capital
- government
- marginal utility
Which of the following is a direct tax?
- Sales tax
- Income tax
- Value added tax
- Entertainment tax
- Corporate tax
What do we call the Net Domestic Product at factor cost?
- Domestic income
- National income
- Private income
- Personal income
- Disposable income