1.	____ is the final value of all the finished goods and services produced within a country’s borders in a specific time period ?
	Government revenue
	Net National Product
	Gross Domestic Product
	Gross National Product
	Answer: Gross Domestic Product Explanation: Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.
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2.	The aggregate value of goods and services produced in an economy can be calculated by three methods: income method, expenditure method and _____ method ?
	spending
	product / value added
	deposit
	lending
	Answer: product / value added Explanation: The value-added method of calculating national income focuses on the value added to a product at each stage of production.
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3.	Which of the following best defines Net National Income ?
	NDP – Depreciation
	GNP + Depreciation
	GDP – Depreciation
	GNP – Depreciation
	Answer: GNP – Depreciation Explanation: Gross National Product is Gross Domestic Product (GDP) plus net factor income from abroad. It measures the monetary value of all the finished goods and services produced by the country’s factors of production irrespective of their location. When depreciation is deducted from the GNP, we get Net National Income.
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4.	Which country was the first to implement Goods and Services Tax (GST) ?
	France
	USA
	Germany
	Canada
	Answer: France Explanation: The Goods and Service Tax is popularly known as GST was first introduced in France in 1954. It came into effect in India from 1 July 2017(also known as GST day) by the 101st amendment of the constitution . GST replaced the existing tax system of India into a single tax.
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5.	Tax reforms are concerned with the reforms in the government’s taxation and public expenditure policies, which are collectively known as its _____ ?
	fiscal reforms
	fiscal policy
	financial policy
	financial reforms
	Answer: fiscal policy Explanation: Tax reforms are concerned with the reforms in the government’s taxation and public expenditure policies, which are collectively known as its Fiscal Policy. Through fiscal policy the government adjusts its spendings and tax rate to monitor and influence the nation’s economy.
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6.	Which of the following statements regarding Goods and Services Tax is INCORRECT ?
	It has no Compliance Cost
	This eliminates the far-reaching effects of tax.
	It resolves disputes related to the classification of goods and services
	Goods and services tax will not be a cost for registered retailers, so there will be no hidden tax.
	Answer: It has no Compliance Cost Explanation: Goods and services tax (GST) has no compliance cost.
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7.	A situation where the expenditure of the government exceeds its revenue is called ?
	Default Financing
	Deficit Revenue
	Budget Deficit
	Default Revenue
	Answer: Budget Deficit Explanation: A budget deficit occurs when the expenditure of the company exceeds the revenue collected by the country. The government generally uses the term budget deficit when referring to spending rather than businesses or individuals.
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8.	What is the National Gross Domestic Product(GDP) ?
	The GDP that is calculated in terms of cryptocurrency.
	The GDP that is calculated by taking a base year as a determinant.
	The GDP that is calculated at the current market price.
	The GDP that excludes all exports and imports in the calculation.
	Answer: The GDP that is calculated at the current market price. Explanation: The GDP that is calculated at the current market price. Explanation: Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
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9.	Which of the following statements is true regarding disinflation ?
	A scenario when inflation is mainly due inflation of only a few commodities and not of all commodities
	An overall decrease in prices over a specific period
	A decrease in the rate of inflation in a specific period.
	A sudden sharp decrease in prices due to unexpected reasons.
	Answer: A decrease in the rate of inflation in a specific period. Explanation: Disinflation is a decrease in the rate of the inflation. Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the price were rising. For example, if the annual inflation rate for the month of january is 5% and it is 4% in the month of February, the prices disinflated by 1% but are still increasing by a 4% annual rate.
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10.	Which of the following relations is true ?
	GNP = GDP * Net factor income from abroad
	GNP = GDP - Net factor income from abroad
	GNP = GDP + Net factor income from abroad
	GNP = GDP / Net factor income from abroad
	Answer: GNP = GDP + Net factor income from abroad Explanation: GNP (Gross National Product) = GDP + net property income from abroad. This net income from abroad includes dividends, interest and profit. GNI (Gross National Income) = (similar to GNP) includes the value of all goods and services produced by nationals – whether in the country or not.
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