INDEX

Sr.
Unit Weightage (%)
No.
1 Economics 15.23

2. Agril. Economics 5.24

3. Basic Concept 16.20

4. Wants 1.90

5. Law of Diminishing Marginal Utility 7.62

6. Consumer’s Surplus 5.24

7. Demand 17.62

8. Elasticity of Demand 10.95

9. Welfare Economics 1.90

10. National Income 6.19

11. Public Resources 7.14

12. Inflation 4.28

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 Ag. Econ 2.1 (1+1)

PRINCIPLES OF AGRICULTURAL ECONONOMICS

Unit : -1 Economics
1. The subject matter of economics dealing with large aggregates or economy
as a whole is called
A. Macro Economics B. Micro Economics
C. Price theory D. All the above
2. The meaning of „Economics‟ is most closely associated with the word
A. unlimited B. Free
C. scare D. None
3. Which of following is/are the limitations of Macro Economics
A. Fallacy of composition B. It considers aggregate as
homogenous
C. Aggregate may not important D. All the above
necessarily
4. The Economics tells us the things ought to be it means it is a
A. Positive Science B. Negative Science
C. Normative Science D. Applied Science
5. Rent, wage, interest and profit are related to the term
A. Production B. Consumption
C. Exchange D. Distribution
6. The process of determination of rent, wages, interest and profit is called
A. Production B. Consumption
C. Exchange D. Distribution
7. In capitalism, all the factor of production are owned and controlled by
A. Public sector B. Private sector
C. Central planning Authority D. All the above
8. The concept of Mixed economy was introduced by
A. Adam Smith B. Lionel Robbins
C. Alfred Marshall D. J.M. Keynes
9. “Father of Economics”.
A. Marshall B. Adam Smith
C. Robins D. Lord Keynse
10. „Welfare‟ Definition was given by
A. Marshall B. Adam Smith
C. Lord Keynse D. Robins
11. „Scarcity‟ Definition was given by
A. Robins B. Marshall
C. Lord Keynse D. Adam Smith
12. „Growth‟ Definition is given by
A. Marshall B. Robins
C. Adam Smith D. Lord Keynes

2
13. Micro-Economics is also called
A. Price theory B. Income theory
C. Employment theory D. Investment
14. The term “ Micro” is derived from the …….word which means……..
A. Latin, small B. Greek, small
C. English, tiny D. Roman, small
15. Which of these would be classified as capital in economics
(a); (b); (c); (d)
A. Bhankra Dam B. Indira canal
C. Golden triangle D. All the three
16. Capital in economics means
A. Factor of production B. Fund brought in by the
entrepreneur
C. Investment in shares, bank D. All the above
deposits
17. The terms Micro economic and Macro economics were coined by
A. Prof. Samuelson B. Giffen
C. Prof. Ragner Frisch D. Eagle
18. Which of these are outside the domain of macro economics
A. Consumer behavior B. National income
C. Economic growth D. Balance of payment and trade
19. Scarcity of resources means
A. Limited resources B. Non – existence of resources
C. Both D. None
20. The subject matter of economics dealing with an individual or tiny
aggregates of population is called
A. Macro Economics B. Micro Economics
C. Income theory D. All the above
21. The author of Modern economic Theory book was ……………………..
A. K.K.Dewatt B. J.D. Verma
C. A.L.Ahuja D. Subba Reddy
22. Economics is a ………………….. science.
A. Social B. Environmental
C. physical D. Biological
23. Economics is a science of …………………..
A. Choice B. scarcity
C. behavior D. all
24. Economics as a positive science explains ………………
A. What is B. What ought to be
C. Both A and B D. None of above
25. Economics as a normative science explains ………………
A. What is B. What ought to be
C. Both A and B D. None of above
26. Which of the following definition of Economics include the concept of “scale
of preference
A. Wealth definition B. Scarcity definition

3
 C. Income definition D. Growth definition
27. Economic is primarily a study of
A. Wealth B. welfare
C. Man D. Money
28. The creation of utility by the way of marketing is called as
A. Production B. Distribution
C. Consumption D. Exchange
29. The definition of Economics given by Alfred Marshall has neglected
A. Material welfare B. Non-material welfare
C. Both D. None
30. Rent , wages, interest and profit are related to the term
A. Production B. Consumption
C. Exchange D. Distribution
31. Economic is a
A. Science B. Art
C. Both D. None
32. Economics laws are
A. Hypothetical B. Exact
C. Certain D. None

Unit : -2 Agril. Economics

33. Agricultural economics is an applied field of …………………
A. Politics B. Economics
C. management D. society
34. Study of the economy as a whole (national level) is known as
A. Microeconomics B. Macroeconomics
C. Socioeconomics D. None
35. Micro economics theory deals with
A. Economic behavior of B. Economy as a whole
individual economic decision
making units
C. Trade relations D. Economic growth of the society

36. Normative economic theory deals with

A. What is or how the economic B. How the problem should be
problem facing the society are solved
solved
C. What to Produce D. How to produce
37. In a mixed economy which sector(s) is/ are found
A. Private Only B. Public sector only
C. None D. Both a and b

38. Economic resources are

A. Unlimited B. Limited in supply and use
C. Limited in supply but have D. Unproductive
alternative uses

4
39. The famous book “An enquiry into the nature and causes of wealth of
Nation” was written by –
A. Adam Smith B. Samuelson
C. Robertson D. JB Say
40. The famous book “An enquiry into the nature and causes of wealth of
Nation” was published in-
A. 1776 B. 1750
C. 1850 D. 1886
41. Economics cannot be considered a perfect science because
A. Human behaviour is B. It is difficult to make correct
unpredictable prediction of economic variables
C. Economist do not have D. All the three
common opinion about a
particular economic event
42. The basic assumption of an economic analysis is/ are
A. Cetris paribus B. Rational behavior
C. Both D. None
43. ----------is known as father of economics
A. Adam Smith B. Prof. Samuelson
C. Alfred Marshall D. J R Hicks

Unit : -3 Basic Concept

44. ________ is the power regulated of all the economy activity in capitalistic
economy
A. Demand B. Supply
C. Price D. Consumption
45. ………………. refers to destruction of utility.
A. Cosumption B. production
C. exchange D. None
46. Consumption is destruction of _______
A. Product B. Good
C. Utility of goods D. All a, b & c
47. Production is ______.
A. Creation of utility B. Distribution of good
C. Destruction of utility D. None
48. Consumption Goods are also called goods of the
A. First order B. Second order
C. Last order D. None
49. Which of the following is/ are not an economic resource
A. Land B. Capita
C. Labour D. Air
50. Which of the following is/ are an economic resource
A. Land B. Capita
C. Labour D. All the three

5
51. Which of the following is/ are a non-economic resource
A. Air B. Water
C. Sunlight D. All the three
52. Which of these resources would be called as land in economics
A. Coal mines of Bihar B. Water resources of Uttaranchal
C. Mineral deposits of Jharkhand D. All the three
53. Goods or services that are not necessary for living are
A. Needs B. Desires
C. Wants D. Essentials
54. Complementary goods are those which are ……………
A. Consumed simultaneously B. Close competitive
C. Both D. Unrelated
55. Sugar and tea are …………… goods
A. Complementary B. Prefect substitute of each other
C. Both D. Unrelated
56. Goods or services that are necessary for living are
A. Needs B. Desires
C. Wants D. Essentials
57. The creation of the utility by the ways of storage is called as ………………..
utility
A. time B. exchange
C. distribution D. consumption
58. Capital goods are also called good of ……………….
A. first order B. second order
C. third order D. fourth order
59. Anything that can satisfies human wants …………..
A. good B. price
C. value D. utility
60. Value is expressed in terms of money is called ……………
A. exchange B. price
C. In-use D. commodity
61. A car for busy doctor is ………………… good.
A. comfort B. necessary
C. luxuries D. efficiency
62. Processing adds …….. utility.
A. form B. place
C. time D. none
63. Transportation adds …………… utility
A. form B. place
C. time D. none
64. Which of the following is an external, material and transferable good ?
A. Table B. Goodwill of business
C. Conduct certificate of a student D. Skill of a doctor
65. Which of the following is an external, material and non-transferable good ?
A. Table B. Goodwill of business
C. Conduct certificate of a D. Skill of a doctor

6
 student
66. Which of the following is an external, non-material and transferable good ?
A. Table B. Goodwill of business
C. Conduct certificate of a student D. Skill of a doctor
67. Which of the following is an external, non-material and non-transferable
good ?
A. Friendship B. Goodwill of business
C. Conduct certificate of a student D. Skill of a doctor
68. Which of the following is an internal/personal, non-material and non-
transferable good ?
A. Table B. Goodwill of business
C. Conduct certificate of a student D. Skill of a doctor
69. Free good have a great
A. Value in use B. Value in exchange
C. Transferability D. None
70. For which of the following goods there is value in use?
A. Table B. Chair
C. Sunshine D. All the above
71. which of the following goods there possess utility ?
A. Free goods B. Economic goods
C. Both D. None
72. Which of the following good is an intermediate good?
A. Cotton B. Machinery
C. Rice D. None of the above
73. Which of the following goods possess value in use?
A. Free goods B. Economic goods
C. Both D. None
74. Which of the following goods possess value in exchange?
A. Free goods B. Economic goods
C. Both D. None
75. Sand near see shore is not wealth because, it does not possess
A. Transferability B. Utility
C. Scarcity D. All of the above
76. A surgeon‟s skill is not wealth because,it does not have
A. Transferability B. Utility
C. Scarcity D. All of the above
77. For free good, opportunity cost is
A. Zero B. Infinity
C. One D. Negative
Unit : -4 Wants
78. Anything that can satisfies a human want is called a
A. Services B. Supply
C. Good D. Demand
79. Human wants are
A. Unsatisfiable B. Unlimited
C. Undefined D. Limited

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80. The means to satisfy human wants are ………………..
A. Unsatisfiable B. Unlimited
C. Undefined D. Limited
81. ………………. Are the wants, which are essential and without them we
cannot imagine life
A. Comfort B. Luxuries
C. Necessaries D. All the above
Unit : -5 Law of Diminishing Marginal Utility
82. _________________ utility is the addition made to the total utility

A. Total B. Marginal
C. Additional D. Place
83. When total utility increases, marginal utility _________________.
A. Decline B. increases
C. Constant D. Positive
84. In the process of the consumption, the consumer stop purchasing the
commodity at the point where,
A. MU>Price B. MU<Price
C. MU=Price D. MU=TU

85. Increase in price of a product reduces the purchasing power as a result of

which demand for a product goes up. This effect is known as
A. Substitution effect B. Income effect
C. Diminishing marginal utility D. Law of diminishing returns
concept
86. According to traditional approach the factor responsible for operation of
downward slope of demand curve are
A. Change in number of B. Law of decreasing marginal
consumers utility
C. Alternative uses of goods D. All the three
87. The law of indifference is/are also know by
A. Law of substitution B. law of equi marginal utility
C. Law of diminishing marginal D. All the three
utility
88. ………………… refers to the sum of utilities of all units of a commodity
consumed.
A. Total Utility B. Negative Utility
C. Marginal Utility D. Positive Utility
89. When Total Utility reaches maximum Marginal Utility reaches …………
A. positive B. Zero
C. negative D. decline
90. The concept of Law of Diminishing Marginal Utility is based on ……………..
approach.
A. cardinal B. ordinal
C. Both a and b D. Either a or b
91. ………………… surplus is the excess of what we are preapared to pay over

8
 what we actually pay for a commodity.
A. Consumer’s B. Producer‟s
C. Economic D. Total
92. Marginal utility of a commodity is the utility derived from …………….. unit of
commodity
A. First B. Last
C. Additional D. All the unit
93. Utility of the last unit is called
A. Total utility B. Marginal utility
C. Initial utility D. Zero utility
94. When marginal utility is high, price of the commodity is ………………..
A. Low B. High
C. Constant D. No relation
95. Whether the Law diminishing Marginal Utility is applicable to money?
A. Yes B. No
C. Applicable in some cases D. No relation
96. In case of free good , marginal utility is ………………
A. Positive B. Negative
C. Infinity D. Zero
97. In case of scare good , marginal utility is ………………
A. Positive B. Negative
C. Infinity D. Zero

Unit : -6 Consumer’s Surplus

98. Which of the following falls under deductive method of economic
investigation
A. Consumer’ surplus B. Engle‟s Law
C. Malthusian theory of D. None
population
99. If the price of commodity is too high, supply will be greater than the demand
resulting in a
A. Monopoly B. Boycott
C. Surplus D. Shortage
100. Which of the following is not a supply shifter for farm product ?
A. Consumer income B. New technology
C. Government programs D. Weather
101. A rise in the market price …………………. the consumer‟s surplus.
A. increases B. reduces
C. constant D. none
102. A fall in the market price ……………… the consumer‟s surplus.
A. reduces B. constant
C. increases D. none
103. The consumer‟s surplus is worked out by
A. total amount spent _ Total B. total utility gained _ Marginal
utility gained utility
C. total utility gained _ Total D. none of above

9
 amount spent
104. The consumer‟s surplus is worked out by
A. What the consumer is willing B. What the consumer paid _ Toatal
to pay _ What he actual pay utility gained
C. What the consumer is willing What the consumer paid _
to pay _ Marginal utility gained Balance amount left with the
consumer
105. Consumer‟s surplus in case of necessaries of life is …………………. than
luxuries
A. Higher B. Lower
C. Zero D. None
106. If the demand for the product is less elastic, the consumer‟s surplus is
A. Higher B. Lower
C. Zero D. None
107. Consumer‟s surplus in case of necessaries of life is ……..
A. Measurable B. Not measurable
C. Zero D. None
108. If the price of commodity increased, consumer‟s surplus …………..
A. Increases B. Decreases
C. Remains same D. None

Unit : -7 Demand
109. „Ceteris Paribus‟ term is related to
A. Monetary theory B. Law of demand
C. General equilibrium theory D. All the above
110. The slop of demand curve is ……………… to the origin.
A. linear B. concave
C. both D. convex
111. As the price of commodity increase, demand for it
A. Decrease B. Increase
C. Extend D. Contracts
112. For which of the following, there is joint demand?
A. Tea B. Electricity
C. Coal D. Ink
113. Price elasticity of demand of food products is generally
A. Infinite B. Less elastic
C. More elastic D. Zero
114. ……………. effect refers to shift in consumption behavior of an individual to
other related goods due to rise in price of a particular good.
A. Income B. Substitution
C Price D. None

115. In case of inferior goods or Giffen goods, if the price of commodity is

increased, demand for a commodity…………….
A. increase B. decrease
C. Remain same D. All of above

10
 116. The tabular information pertaining to various quantities of goods purchased
by consumer at various prices of the good of the good is called
…………………………
A. Demand schedule B. demand
C. price D. None of above
117. Market equilibrium of a commodity is determined by
A. Balancing of demand and B. The demand
supply position
C. Aggregate supply D. Government intervention
118. Ceteris Paribus means
A. Holding demand constant B. Holding supply constant
C. Price being constant D. Other things being constant
119. Consumption demand does not depend upon the level of
A. Income B. Propensity to consume
C. Consumer spending D. Marginal efficiency of
investment
120. The slope of the consumption curve connotes
A. Average propensity to save B. Marginal Propensity to
consume
C. Marginal propensity to save D. Level of consumption in the
economy
121. If demand of coffee increases by 10% with 20% decline in the price of sugar
we can say that
A. Cross price elasticity of B. Cross price elasticity of demand
demand is negative and both is negative and the goods
the products are are substitute
complementary to each
other
C. Cross price elasticity is positive D. None
and the products are
complementary to each other
122. Which of these will have highly inelastic supply curve
A. Perishable goods B. Consumer durables goods
C. Items of elite class D. All the three
consumption
123. According to law of supply ………..
A. Higher the price higher the B. Higher the price lower the cost of
production of the product production
C. Lower the price lower the D. Higher the price higher the
demand for the product quantity the seller is prepared
to supply in market
124. If price of sugar increase, the demand for tea will ………….
A. Fall B. Increase
C. Not affected D. No relation
125. Traditional approach to law of Demand was propounded by
A. Giffen B. Samuelson

11
 C. Alfred Marshall D. Pique
126. According to Modern approach, law of demand is caused by
A. Income effect B. Substitution effect
C. Both D. None
127. Which of these are exception to law of demand
A. Giffen effect/goods B. Future change in prices
C. Change in fashion D. All the three
128. Shift in demand curve or change in demand curve occurs due to
A. Increase in price B. Decrease in cost of production
C. Change in Cetris paribus D. All the three
conditions
129. Change in quantity demanded or movement along demand curve occurs due
A. Due to change in price only B. Change in Cetris paribus
conditions only
C. Change in cost of production D. Change in technology
130. Increase in demand is also known as – in economics
A. Expansion in demand B. Compression in demand
C. Extension in demand D. Extraction in demand
131. Decrease in demand is also known as
A. Expansion in demand B. Expansion in demand
C. Extension in demand D. Extraction in demand
132. Tea and coffee are
A. Complementary goods B. Alternative goods
C. Unrelated goods D. None of these
133. If price of Tea increases the demand of coffee will
A. Increase B. Decrease
C. Remain same D. Cannot say
134. For a monopoly firm market demand curve is
A. Marginal revenue curve itself B. Average Revenue curve itself
C. Marginal cost curve D. None
135. ……………… refers to the various quantities of the commodity or service that
a consumer would purchase at a given time in a market at various
hypothetical prices.
A. Price Demand B. Market Demand
C. Individual Demand D. Income Demand
136. The demand of the individual consumer for a particular good or service at
different price is called …………………….
A. Price Demand B. Market Demand
C. Individual Demand D. Income Demand

137. ……………… refers to the various quantities of a good or service which would
purchased by the consumers at various levels of income.
A. Price Demand B. Market Demand
C. Individual Demand D. Income Demand
138. …………….…………… means the quantity of good or service which will be

12
 demanded with reference to change in price not of this good but of other
inter-related goods.
A. Price Demand B. Market Demand
C. Individual Demand D. Cross Demand
139. The law of demand states that, demand for a commodity varies ………….
With price.
A. inversely B. directly
C. proportionately D. None of above
140. …………………. in demand refers to increase in quantity demanded of a
commodity not due to change in price but due to increase in family
members, rise in income etc.
A. increase B. extension
C. decrease D. contraction
141. …………………. in demand refers to increase in quantity demanded of a
commodity due to fail in price same commodity.
A. Increase B. Extension
C. Decrease D. Contraction
142. Less demanded at higher price refers to ……….. in demand.
A. increase B. extension
C. decrease D. contraction
143. The demand a commodity, that can be put to several uses is ………
demand.
A. composite B. Direct
C. derive D. joint
144. The demand for a ultimate object is ……………
A. composite B. direct
C. derive D. joint
145. The demand for a various kinds of labour and materials to make the final
product is called ……….. demand.
A. composite B. direct
C. derive D. joint
146. When several goods are demanded together for a common purpose, it is
called …………. demand
A. composite B. direct
C. derive D. joint
Unit : -8 Elasticity of Demand
147. Equilibrium relates to which of these
A. Market condition which B. Market state of falling price
oscillate
C. Market condition of rising price D. Market conditions which once
achieved tends to persist
148. Luxury goods have --- -- degree of elasticity
A. High B. Low
C. Moderate D. Completely inelastic
149. If the cross price elasticity of demand for two product is negative, then the
two products are

13
 ……………….
A. Complementary to each B. Perfectly substitute for each
other other;
C. Completely competitive D. Unrelated
150. Goods which are perfect substitute of each other will have rate of
substitution
A. Unity B. Less than 1
C. More than 1 D. Zero
151. Goods which are perfect substitute of each other will have elasticity of
substitution…...
A. Unity B. Less than 1
C. More than 1 D. Infinite
152. Cross elasticity of a nearly perfect substitute products will be
A. Infinite B. Zero
C. > 1 D. <1
153. Cross elasticity of unrelated products will be
A. Infinite B. Zero
C. > 1 D. <1
154. Cross elasticity of complementary products will be
A. Infinite B. Zero
C. > 1 D. <0
155. If two goods are perfect substitutes for one another, the elasticity of
substitution will be
A. Infinite B. Zero
C. > 1 D. <0
156. If two goods are not substitutes at all for one another, the elasticity of
substitution will be
A. Infinite B. Zero
C. > 1 D. <0
157. The income elasticity of demand of inferior goods is generally
A. >1 B. < 1
C. < 0 D. = 0
158. The income elasticity of demand of normal goods is generally
A. >1 B. < 1
C. < 0 D. > 0
159. The cross elasticity of complementary goods is generally
A. >1 B. < 1
C. < 0 D. = 0
160. The cross elasticity of substitute goods is generally
A. >1 B. < 1
C. < 0 D. > 0
161. The elasticity of a demand curve with a constant slope
A. Increases at higher price B. Decreases at higher price
C. Increases at lower price D. Remains constant
162. A perfect inelastic supply curve will be
A. Parallel to Y axis or a vertical B. Parallel to X axis

14
 line
C. U shaped D. Downward sloping
163. A perfect elastic supply curve will be
A. Parallel to Y axis or a vertical B. Parallel to X axis
line
C. U shaped D. Downward sloping
164. When a negligible change in price of commodity leads to an infinite
extension of quantity demanded, it is called ………… demand.
A. perfect elastic B. relatively elastic
C. perfect inelastic D. relatively inelastic
165. When a great change in price of the commodity leads to change in quantity
demanded, it is called …………… demand.
A. perfect elastic B. relatively elastic
C. perfect inelastic D. relatively inelastic
166. When a change in price of commodity leads to same change in quantity
demanded it is called …………….. demand.
A. perfect elastic B. relatively elastic
C. perfect inelastic D. unitary elastic
167. ……………… elasticity refers to responsiveness of demand for a commodity
in a market at various level of price.
A. Price B. Income
C. Cross D. All
168. ……………… elasticity refers to responsiveness of demand for a commodity
in a market at various level of income of the individual.
A. Price B. Income
C. Cross D. All
169. ……………… elasticity refers to responsiveness of demand for a commodity
in a market at various level of price not of same good but of other related
good.
A. Price B. Income
C. Cross D. All

Unit : -9 Welfare Economics

170. In Economics, well being of individual is known as …………………….

A. Human Welfare B. A and B both
C. Social Welfare D. None
171. A branch of economics that seeks to evaluate economic policies in terms of
their effects on the community‟s well-being is known as ………………..
A. Social Economics B. Welfare Economics
C. Modern Economics D. Agricultural Economics
172. Indian economist …………………… was awarded the 1998 Nobel Prize In
Economics.
A. Adam Smith B. Ahuja
C. K.K. Dewett D. Amartya Sen

15
173. ……………….. are two dimensions of welfare economics.
A. Allocative efficiency B. Equal distribution of income
C. Both A and B D. None

Unit : -10 National Income

174. Nominal GDP is
A. The total value of goods and B. The total value of goods and
services net of exports services produced during periods
of low unemployment
C. The total value of goods and D. The total value of goods and
services measured at current services produced at full
prices employment.

175. …………… refers to the gross value of all final goods and services produced
in a country in the current year including the net income from abroad.
A. Net National product at factor B. Net National product at market
cost price
C. Gross National product D. Per capita income
176. GNP at market price is given by
A. GNP+ market price B. GNPX market price
C. GNP/ market price D. GNP- market price
177. …………… refers to the gross value of all final goods and services produced
in a country in the current year including the net income from abroad.
A. Net National product B. GNP at market price
C. GNP at factor cost D. Per capita income
178. NNP is given by …………….
A. GNP-Depreciation B. GNP + Depreciation
C. GNP/Depreciation D. GNP X Depreciation
179. If we deduct personal taxes from personal income, it will be ……….. income.
A. disposable B. Per capita
C. GNP D. GDP
180. GDP at factor cost exceeds GDP at market price
A. When the factor income from B. When depreciation on fixed
abroad is negative ; capital exceeds income in
investment;
C. When direct tax exceeds D. When subsidies exceeds
indirect tax indirect taxes.
181. The difference between Gross National Product (GNP) and Gross Domestic
Product GDP) is
A. Excess of subsidies over B. Depreciation
indirect taxes
C. Net foreign income from D. Excess of indirect taxes over
abroad subsidies
182. National income is
A. NDP at market prices B. NDP at factor cost
C. NNP at factor cost D. GNP at market prices

16
183. NDP does not include
A. Payments made for income B. Depreciation allowances
taxes
C. Undistributed profits D. The value added from
intermediate goods
184. Which of the following is/ are taken in to consideration whole computing
Gross National Product ?
A. Only the value of final product B. Goods and services of current
year production only
C. Transfer payment are not D. All the above
included
185. National income is ……………….
A. Government annual revenue B. Budget estimate
C. Expenditure of public D. None
undertaking
186. Which of the following is not included during the calculation of Gross
Domestic Product?
A. Direct taxes B. Indirect taxes
C. Old age pension D. Public investment
Unit : -11 Public Resources
187. Tax is a …………………. contribution
A. optional B. Voluntary
C. discretionary D. compulsory
188. Income tax is an example of ……………… tax.
A. Direct tax B. Progressive tax
C. Indirect tax D. Digressive tax

189. An example of direct tax is / are

A. income tax B. death duty
C. property duty D. all
190. An example of indirect tax is / are
A. stamp duty B. excise duty
C. custom duty D. all
191. Tax bearer and tax payer are same in case of
A. direct tax B. Indirect tax
C. both D. None

192. Impact and incidence of tax do not lie on the same person in case of ……..
A. direct tax B. indirect tax
C. both D. None
193. Impact and incidence of tax lie on the same person in case of ……..
A. direct tax B. indirect tax
C. both D. None
194. Service tax is an example of ………………. Tax.
A. Direct tax B. Progressive tax
C. Indirect tax D. Digressive tax

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195. A …………………. tax is one in which tax rate remains constants regardless
of whether the tax base is large or small
A. Proportional tax B. Progressive tax
C. Value added tax D. Digressive tax
196. A …………………. tax is one in which tax rate increases as the tax base
increases.
A. Proportional tax B. Progressive tax
C. Value added tax D. Digressive tax
197. A tax levied on the value of each of the process carried out by a business is
called ………………………..
A. Proportional tax B. Progressive tax
C. Value added tax D. Digressive tax
198. Land revenue is a part of Taxes of the ………………. Government.
A. State B. District
C. Central D. Panchayat
199. Income tax (other than agriculture) is levied by ………… Government.
A. State B. District
C. Central D. Panchayat
200. Canon of taxation are laid down by ………………..
A. Adam Smith B. Lionel Robbins
C. Alfred Marshall D. Lord Keynes
201. The difference between personal disposable income and personal income is
A. Indirect taxes B. Subsidies
C. Transfer payments D. Personal taxes
Unit : -12 Inflation
202. A rise in general price level of goods and services in an economy over a
period of time is called …………….
A. inflation B. reflation
C. deflation D. stagflation
203. What happens to value of rupee where there is increase in general price
level?
A. Falls B. Rise
C. Constant D. None
204. In India , inflation is calculated on a …………… basis.
A. daily B. monthly
C. weekly D. Yearly
205. Too much money chasing too few good implies …………….
A. deflation B. inflation
C. Trend fluctuation D. Cyclic fluctuation
206. The primary tools for controlling inflation is …………………………………
A. Agricultural policy B. monetary policy
C. Business policy D. none
207. The opposite of inflation is known as ………………
A. stagflation B. reflation
C. Dis-inflation D. deflation
208. Deflation implies …………..

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 A. rise in money value B. fall in money value
C. Trend fluctuation D. Cyclic fluctuation
209. In India, inflation is calculated on basis of ……………. Price index.
A. WPI B. CPI
C. both D. none
210. Galloping inflation is otherwise called as ……………. Inflation.
A. running B. creeping
C. hyper D. walking

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