INDIAN ECONOMY TEST - 5-Indian Economy-Quiz

Civil Services Exams-INDIAN ECONOMY TEST - 5

Q 11.
Consider the following statements about capital goods.

1. They are mainly machineries and equipments

2. They are used for the production of intermediate goods.

3. They are used for the production of consumer goods.

4. They are part of an economy’s fixed capital formation

Of these:

Codes:

a.)
1, 2, 3 and 4 are correct
b.)
1, 2 and 3 are correct
c.)
2 and 4 are correct
d.)
2, 3 and 4 are correct

Q 12.
Consider the following items:

1. Finished goods

2. Raw materials

3.Work in progress

4. Sold products

Of these, inventories are:

Codes:

a.)
1, 2, 3 and 4
b.)
1, 2 and 3
c.)
1, 2 and 4
d.)
2, 3 and 4

Q 13.
In the case of criterion adopted by the Fifteenth Finance Commission for horizontal transfer of central taxes, ‘tax effort’ implies:

a.)
Ratio between the own per capita tax revenue and fiscal deficit.
b.)
Ratio between own per capita tax revenue and per capita central revenue.
c.)
Ratio between per capital own tax revenue of the State and its per capita GSDP.
d.)
Ratio between own per capita tax revenue and per capita central tax transfer.

Q 14.
Consider the following criterion regarding horizontal transfer from the centre to the states.

1. Forest and Ecology

2. Demographic Performance

3. Tax Effort

4. Fiscal Discipline

Which of these criteria have been newly included by the Fifteenth Finance Commission vis a vis the previous finance commission in its recommendation for horizontal transfer?

Codes:

a.)
1, 2, 3 and 4
b.)
1, 2 and 3
c.)
2 and 4
d.)
2, 3 and 4

Q 15.
The criteria that has the highest weight for the allocation of the central tax share among states as per the Fifteenth Finance Commission recommendation is:

a.)
Population
b.)
Area
c.)
Tax Effort
d.)
Income Distance

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