Economics MCQ Questions and Answers

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Q111
Deficit financing increases-
  • A Rate of money inflation
  • B Rate of money deflation
  • C Rate of devaluation
  • D All of the above
Answer: Option A
Q112
Which is not a monetary measure to control inflation ?
  • A Soft loan policy
  • B Hard credit policy
  • C Tight the regulation of money issue
  • D To reduce the quantity of money
Answer: Option A
Q113
Which is the monetary measure to control inflation ?
  • A Increase in taxation
  • B Decrease in taxation
  • C Soft credit policy
  • D Hard credit policy
Answer: Option D
Q114
Selling of securities in the open market by the central bank creates-
  • A Inflation
  • B Deflation
  • C Both of above
  • D None of the above
Answer: Option B
Q115
To control inflation the central bank should do-
  • A To sell government securities and to decrease bank rate
  • B To sell government securities and to increase bank rate
  • C To purchase government securities and to increase bank rate
  • D To purchase government securities and to decrease bank rate
Answer: Option B
Q116
Which of the following is not a direct tax ?
  • A Income tax
  • B Property tax
  • C Sales tax
  • D House tax
Answer: Option C
Q117
Ultimate burden of tax is known as-
  • A Impact
  • B Incidence
  • C Shifting of tax
  • D None of the above
Answer: Option B
Q118
When elasticity of demand and elasticity of supply are equal, the burden of tax ?
  • A Lies more on buyer
  • B Lies more on seller
  • C Lies equally on buyer and seller
  • D All of the above are false
Answer: Option C
Q119
Which of the following economists suggested tax on expenditure ?
  • A Dalton
  • B Musgrave
  • C Kaldor
  • D Van Philips
Answer: Option A
Q120
If interest payment is deducted from the fiscal deficit, then the balance is-
  • A Primary deficit
  • B Budgetary deficit
  • C Revenue deficit
  • D Monetary deficit
Answer: Option A

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