Tag: economics

Questions Related to economics

From the following information calculate interest coverage ratio: Profit after Tax Rs. 2,70,000; Tax Rs. 30,000; Interest on long term funds Rs.50,000

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  1. 5 times

  2. 8 times

  3. 7 times

  4. 5.5 times

Show answer
Correct Option: C
Explanation:

Interest coverage ratio is given by =EBIT/Interest Expense

Therefore in this case EBIT= 270000+30000+50000=350000
Interest expenses= 50000
Interest coverage ratio will be 7 times

$NDP _{MP}$ - Indirect Taxes+ Subsides =

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  1. $NNP _{MP}$

  2. $NDP _{FC}$

  3. $NNP _{FC}$

  4. None of the above

Show answer
Correct Option: B
Explanation:

NDPMP is defined as the market value of final goods and services produced in the domestic territory of a country by its residents and non residents in an accounting year less depreciation. NDPMP= GDPMP-Depreciation

NNPFC= NDPMP-Indirect taxes+Subsidies
NNPFC is defined by total factor incomes earned by the factors of production.

MODVAT is:

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  1. Modern Value Added Tax

  2. Modified Value Added Tax

  3. Monopoly Value Added Tax

  4. Method of Deduction of VAT

Show answer
Correct Option: B
Explanation:

MODVAT (modified value added tax) was introduced in India in 1986. MODVAT was re-named as CENVAT. The system was termed as MODVAT, as it was restricted upto manufacturing stage and credit of only excise duty paid on manufacturing products (and corresponding CVD paid on imported goods) was available.

The following section/s of the Indian Income Tax govern the receipt of income by way of dividend by companies

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  1. SEc 80k

  2. Sec. 80M

  3. Sec. 80N

  4. All of the above

Show answer
Correct Option: D

If final good attracts an excise duty of Rs. 8000 and Rs. 1000 has already been paid on inputs then the firm will pay the Rs. 7,000 towards excise duty. It is paying tax according to________.

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  1. VAT

  2. CENVAT

  3. MODVAT

  4. None of the above

Show answer
Correct Option: B
Explanation:

Under CENVAT scheme the credit of the excise duty/additional duty of customs paid on inputs and capital goods and service tax paid on input services allowed to be utilized for the payment of the excise duty on the final products or service tax on output services in order to avoid cascading effect of the duty/tax. 

The statistical data are of two types. These types are

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  1. technical data and presentation data

  2. primary data and secondary data

  3. primary data and personal data

  4. none of these

Show answer
Correct Option: B
Explanation:

Consider the statically data,

There are two types of statically data,

1-An advantage of using primary data is that researchers are collecting information for the specific purposes of their study. In essence, the questions the researchers ask are tailored to elicit the data that will help them with their study. Researchers collect the data themselves, using surveys, interviews and direct observations.

2-There are several types of secondary data. They can include information from the national population census and other government information collected by Statistics Canada. One type of secondary data that’s used increasingly is administrative data. This term refers to data that is collected routinely as part of the day-to-day operations of an organization, institution or agency. There are any number of examples: motor vehicle registrations, hospital intake and discharge records, workers’ compensation claims records, and more.

Hence this is the answer.

The statistical data are of two types. These types are

economics introduction to statistical method and econometrics estimating angles ict, investigations and problem solving-1 terms used in statistics

  1. technical data and presentation data

  2. primary data and secondary data

  3. primary data and personal data

  4. none of the above

Show answer
Correct Option: B
Explanation:

The statistical data are two type .These are

1.Primary data-The primary data is the first hand  information that collect and published by the organisation.
2.Secondary Data-The secondary data is the second hand information that is already collected by someone for some purpose. 

Primary data in statistics is the data collected from : 

economics introduction to statistical method and econometrics estimating angles ict, investigations and problem solving-1 terms used in statistics

  1. Primary sources

  2. Secondary sources

  3. Both

  4. None of the above

Show answer
Correct Option: A
Explanation:

Primary data is data originated for the first time by the researcher through direct efforts and experience.

So it is collected from primary sources.

Identify the two types of the statistical data.

economics introduction to statistical method and econometrics estimating angles ict, investigations and problem solving-1 terms used in statistics

  1. Technical data and presentation data

  2. Primary data and secondary data

  3. Primary data and personal data

  4. None of the above

Show answer
Correct Option: B
Explanation:
There are two types of data:-
a) Primary Data: Data extracted by surveying and it is used for that purpose for which surveying is done. 

b) Secondary Data: Data is extracted for another purpose best in using for another purpose. 

Secondary data in statistics is the data collected from :

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  1. Primary sources

  2. Secondary sources

  3. Both

  4. None of these

Show answer
Correct Option: B
Explanation:

Data is classified as both primary and the secondary data.


Primary data is the data which is collected for the first time.
Secondary data is the data which are collected by someone else (secondary sources) and passed through the statistical process.