Indian Economy MCQs

61. Hyperinflation refers to:
A. Moderate inflation
B. Extremely high and rapid inflation
C. Falling prices
D. Stable prices
Answer: B

62. Which type of inflation occurs due to an increase in production costs?
A. Demand-pull inflation
B. Cost-push inflation
C. Imported inflation
D. Creeping inflation
Answer: B

63. Demand-pull inflation occurs when:
A. Demand exceeds supply
B. Supply exceeds demand
C. Taxes are reduced
D. Exports decline
Answer: A

64. Which index measures changes in wholesale prices?
A. CPI
B. WPI
C. IIP
D. HDI
Answer: B

65. Which ministry compiles the Wholesale Price Index (WPI)?
A. Ministry of Finance
B. Ministry of Commerce and Industry
C. Ministry of Agriculture
D. Ministry of Labour
Answer: B

66. Which of the following is an indirect tax?
A. Income Tax
B. Corporation Tax
C. GST
D. Wealth Tax
Answer: C

67. Corporation Tax is levied on:
A. Agricultural income
B. Individual income
C. Company profits
D. Imports
Answer: C

68. GST is based on the principle of:
A. Double taxation
B. One Nation, One Tax
C. Wealth redistribution only
D. Import substitution
Answer: B

69. Which tax was largely subsumed under GST?
A. Income Tax
B. Corporation Tax
C. Value Added Tax (VAT) on many goods and services
D. Property Tax
Answer: C

70. The GST Council is headed by the:
A. Prime Minister
B. Union Finance Minister
C. RBI Governor
D. President of India
Answer: B