Economics Page-8

71) 'Mixed Economy' means
(A) Co-existence of small scale and large scale industries
(B) Co-existence of private and public sectors
(C) Assigning equal importance to both agriculture and heavy industries
(D) Co-existence of the rich and the poor

72) Devaluation of currency can help to increase exports if elasticity of demand of exportable items in other countries is
(A) Less than one
(B) Greater than one
(C) Equal to one
(D) Zero

73) What could a government do to correct the current account deficit
(A) Reduce the deficit on the balance of trade
(B) Reduce the repayment of loans
(C) Reduce the surplus on the capital account
(D) Reduce the volume of exports

74) Whom of the following propounded principles of taxation.
(A) Keynes
(B) Marshall
(C) Adam Smith
(D) Al Ghazali

75) Taxes on commodities are
(A) Direct taxes
(B) Indirect taxes
(C) Progressive taxes
(D) Proportional taxes


76) It is direct tax
(A) Excise tax
(B) Sales tax
(C) Income tax
(D) Custom duty

77) Which of the following tax is best example of ability to pay principle of taxes
(A) Excise tax on cigarettes
(B) Highway tool tax
(C) Proportional sales tax
(D) Personal income tax

78) Which of the following is not a direct tax?
(A) Wealth tax
(B) Professional tax
(C) Income tax
(D) Sales tax

79) Deflation is
(A) Deficit Budget
(B) Reduction in taxation
(C) Increase in public expenditure
(D) Reverse of Inflation

80) Which of the following would cause income to become more unequal
(A) Increased employment
(B) Increased unemployment allowance
(C) More progressive taxes
(D) More regressive taxes



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