Explore topic-wise MCQs in Master of Arts in Economics (M.A. Economics).

This section includes 186 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (M.A. Economics) knowledge and support exam preparation. Choose a topic below to get started.

101.

Public goods are those for which

A. external costs exist.
B. individuals who do not pay cannot be excluded from consuming.
C. individuals who do not pay can be excluded from consuming.
D. no external costs exist.
Answer» C. individuals who do not pay can be excluded from consuming.
Discussion
102.

When consumption of a good is non-rival and non-excludable, the good is a

A. public good.
B. mixed good.
C. private good.
D. service.
Answer» B. mixed good.
Discussion
103.

The provision of public goods requires

A. competition among firms in the market
B. lobbying
C. trade protection
D. none of the above.
Answer» E.
Discussion
104.

The “Tragedy of the Commons” is

A. discovery of corruption among members of the british parliament.
B. exhaustion of resources that are collectively owned.
C. outrageous crime in a boston public park.
D. play by arthur miller.
Answer» C. outrageous crime in a boston public park.
Discussion
105.

Which of the following is a public good?

A. house.
B. traffic sign.
C. both of the above.
D. none of the above
Answer» D. none of the above
Discussion
106.

A negative externality is

A. conflict relation with a foreign country
B. deficit in external trade
C. hurting effect of a private action on other people
D. rain outdoors.
Answer» D. rain outdoors.
Discussion
107.

Wiseman‐Peacock hypothesis supports in a much stronger manner the possibility of:

A. an upward trend in public expenditure
B. a downward trend in public expenditure
C. a constancy of public expenditure
D. a mixed trend in public expenditure
Answer» B. a downward trend in public expenditure
Discussion
108.

The Indian income tax is:

A. direct and proportional
B. indirect and proportional
C. indirect and progressive
D. direct and progressive
Answer» E.
Discussion
109.

The main objective of budgeting is:

A. planning
B. co‐ordination
C. control
D. all of these
Answer» E.
Discussion
110.

Which one of the following is the most acceptable theory of taxation:

A. benefit theory
B. cost of service theory
C. ability to pay theory
D. none of these
Answer» D. none of these
Discussion
111.

The modern state is:

A. laissez–faire state
B. welfare state
C. aristocratic state
D. police state
Answer» C. aristocratic state
Discussion
112.

The system of assigning the source of revenue to the Central as well as State Governments is generally referred to as

A. public finance
B. distributive finance
C. unitary finance
D. federal finance
Answer» C. unitary finance
Discussion
113.

A multilevel decentralized fiscal system involving sharing of fiscal responsibilities between central, state and local governments is referred to as:

A. fiscal union
B. fiscal federalism
C. fiscal equalisation
D. fiscal generalism
Answer» C. fiscal equalisation
Discussion
114.

Existence of Centre State economic inequalities is known as

A. vertical imbalance
B. horizontal imbalance
C. parallel imbalance
D. none of these
Answer» B. horizontal imbalance
Discussion
115.

Identify the Capital Receipts

A. penalty
B. corporation tax
C. dividends on investments made by the government
D. sale of a public sector undertaking
Answer» E.
Discussion
116.

Which one of the following is not the form of Tax Revenue?

A. income tax
B. sales tax
C. license fee
D. excise duty
Answer» D. excise duty
Discussion
117.

Which of the following is a Capital Receipt?

A. profit tax
B. railway ticket fare
C. fee of the government hospital
D. borrowing from the public
Answer» E.
Discussion
118.

Which of the following is a Revenue Receipt?

A. loan from the imf
B. grant received from the world bank
C. borrowing from the public
D. sale of the shares held by the government in hmt
Answer» C. borrowing from the public
Discussion
119.

Fiscal Crisis was carried in ................. period.

A. planning
B. new economic policy
C. before indpendence
D. none of these
Answer» B. new economic policy
Discussion
120.

Public debt in Indian Economy is .................... in nature.

A. increasing
B. decreasing
C. constant
D. none of these
Answer» B. decreasing
Discussion
121.

In internal debt ................ are important.

A. external loans
B. market loans
C. personal loans
D. none of these
Answer» C. personal loans
Discussion
122.

............ tax is in the jurisdiction of the Central government.

A. land revenue
B. corporation tax
C. excise on alcohol
D. tax on electricity consumption
Answer» C. excise on alcohol
Discussion
123.

The value of balanced budget multiplier is always ................

A. 0
B. 1
C. 2
D. indefinite
Answer» C. 2
Discussion
124.

In a concept of budgetary deficit, ............... is always greater than the total revenue.

A. public expenditure
B. taxes amount
C. money supply
D. crr
Answer» B. taxes amount
Discussion
125.

Public debt is the debt owed by ................

A. industry
B. individual
C. central government
D. bank
Answer» D. bank
Discussion
126.

................... budget concept was first introduced in USA in 1964.

A. zero-base
B. no zero-base
C. surplus base
D. none of these
Answer» B. no zero-base
Discussion
127.

Balanced budget means ................ between revenue and expenditure.

A. balance
B. unbalance
C. unequal
D. none of these
Answer» B. unbalance
Discussion
128.

Social marginal productivity criteria was developed by ...........

A. malthus
B. a. e. khan
C. a. k. sen
D. none of these
Answer» C. a. k. sen
Discussion
129.

Pure theory of public expenditure is based on ..............

A. benefit
B. loss
C. profit
D. none of these
Answer» B. loss
Discussion
130.

Wiseman-Peacock was studied expenditure of .............. in 1890-1955.

A. ussr
B. usa
C. uk
D. none of these
Answer» D. none of these
Discussion
131.

Wagner’s Law of increasing ............ activities.

A. central
B. state
C. local
D. one of these
Answer» C. local
Discussion
132.

The theory of second best was introduced by ...............

A. lipse and lancester
B. allen and hicks
C. samuelson and hicks
D. horrod and dommor
Answer» B. allen and hicks
Discussion
133.

Non-rival consumption is the feature of ..............

A. public good
B. private good
C. merit good
D. necessary good
Answer» B. private good
Discussion
134.

The concept of Merit goods was developed by ................

A. musgrave
B. marshall
C. adam smith
D. zak
Answer» B. marshall
Discussion
135.

External loans are raised from

A. idbi
B. icici
C. rbi
D. wto
Answer» E.
Discussion
136.

Debts that are repaid at some specific future date are known as

A. redeemable debts
B. irredeemable debts
C. treasury bill
D. none of the above
Answer» B. irredeemable debts
Discussion
137.

External debts can be raised from ...........

A. individuals
B. rbi
C. commercial banks
D. world bank
Answer» E.
Discussion
138.

Productive debts are utilized for ........

A. transfer payments in form of subsidies
B. they are raised for financing wars
C. they add to productive capacity of the economy
D. special incentives to weaker sections
Answer» C. they add to productive capacity of the economy
Discussion
139.

An empirical law to the effect of growing public expenditure was propounded by

A. wagner
B. peacock
C. wiseman
D. none of these
Answer» B. peacock
Discussion
140.

The theory of fiscal federalism assumes –

A. a federal system of government can be efficient and effective in solving problems.
B. a federal government will be able to bring about economic stability allocation of resources.
C. since states and localities are not equal in their income, federalism is helpful.
D. all of the above
Answer» E.
Discussion
141.

The term fiscal federalism was introduced by

A. dalton
B. seligman c
C. musgrave
D. none of the above
Answer» D. none of the above
Discussion
142.

Pick out the item which is not a part of tax revenue.

A. interest
B. corporate tax
C. excise
D. customs
Answer» B. corporate tax
Discussion
143.

Which is / are the advantages of redemption of debt.

A. saves the government from bankruptcy
B. reduces cost
C. saves future generation from the pressure of public debt
D. all of the above
Answer» E.
Discussion
144.

The term incidence of taxation refers to .....

A. initial burden of the tax
B. final burden of the tax
C. burden of tax on government
D. none of the above
Answer» C. burden of tax on government
Discussion
145.

Debts which have to be paid at some specific future date are known as

A. redeemable debts
B. irredeemable debts
C. treasury
D. none of the above
Answer» B. irredeemable debts
Discussion
146.

Direct tax are………….. in nature.

A. progressive
B. equitable
C. regressive
D. none of the above
Answer» B. equitable
Discussion
147.

Generally, the nature of indirect tax is ……………

A. progressive
B. regressive
C. proportional
D. none of the above
Answer» C. proportional
Discussion
148.

Which of the following is administrative non-tax revenue?

A. fees
B. gifts
C. grants
D. profits of govt. enterprises
Answer» B. gifts
Discussion
149.

Which of the following is not an indirect tax?

A. sales tax
B. custom duty
C. excise duty
D. gift tax
Answer» E.
Discussion
150.

Which of the following is not a direct tax?

A. personal income tax
B. service tax
C. wealth tax
D. corporate income tax
Answer» C. wealth tax
Discussion