Which of the following is true in respect of Centre-State financial relations ?

• Amount given by Centre is the only source of income to States
• States can by-pass Centre while taking foreign loans
• States can not levy income tax
• States can claim 100 % share in excise duty on goods produced in the State
Solution
Correct Option: C  [ States can not levy income tax ]

Explanation:

The architect of the Second Five Year Plan was :

• Mahatma Gandhi
• Subhash Chandra Bose
• P. C. Mahalanobis
• None of them
Solution
Correct Option: C  [ P. C. Mahalanobis ]

Explanation:

Find out the statement which is false.
Financial Structural reform needs

• fall in government budget deficit
• increase in profitability of economic sectors
• reduce inflationary pressure
• increase in the balance of payment deficit
Solution
Correct Option: D  [ increase in the balance of payment deficit ]

Explanation:

If withdrawal of a worker from employment does not create any output loss, this situation is known as

• Search unemployment
• Voluntary unemployment
• Disguised unemployment
• Frictional unemployment
Solution
Correct Option: C  [ Disguised unemployment ]

Explanation:

In Income Tax, Assessee is :

• a person who pays income tax
• a person who deducts income tax from its employees
• a person who prepares income tax Return of tax payers
• None of these
Solution
Correct Option: A  [ a person who pays income tax ]

Explanation:

Which of the following is the role of Finance Commission ?

• Sharing of net proceeds of taxes between the Centre and States.
• Recommending principles for governing the grants-in-aid to the States by the Centre
• Recommendations on matters referred to it by the President for the interest of finance
• All of the above
Solution
Correct Option: D  [ All of the above ]

Explanation:

Which of the following is a primary sector of economic activities in India ?

• Food processing
• Telecom services
• Manufacturing industry
• Agriculture
Solution
Correct Option: D  [ Agriculture ]

Explanation:

The growth of per capita income of current prices is higher than that of per capita income at constant prices because the later takes into account the rate of

• growth of population
• increase in price level
• growth of money supply
• increase in the wage rate
Solution
Correct Option: B  [ increase in price level ]

Explanation:

A closed economy is an economy in which:

• the money supply is fully controlled
• deficit financing takes place
• only exports take place
• Neither exports nor imports take place.
Solution
Correct Option: D  [ Neither exports nor imports take place. ]

Explanation:

Consider the following statements regarding the Goods and Services Tax (GST) of India:

(i) GST is a successor to VAT used in India on the supply of goods and services.

(ii) GST came into effect from 1st July, 2017 through the implementation of the one hundred and first Amendment of the Constitution of India.

(iii) Every decision of the GST Council is to be taken by a majority of not less than three fourths of the weighted votes of the members present and voting at the meeting.

(iv) The GST Council is chaired by the Prime Minister of India.

Select the correct statement/statements using the codes given below.

• (i) only
• (ii) only
• (iii) and (iv) only
• (i), (ii) and (iii) only
Solution
Correct Option: D  [ (i), (ii) and (iii) only ]

Explanation: