1. Which of the following are correctly matched?
1. Different proceeds of taxes levied by the
government Revenue
Account
2. Government borrowings from the Reserve
Bank and treasury bills Capital
Account
3. Divestment of equity holding in public
sector enterprises Revenue
Account
4. Market loans raised by the government Capital
Account
Select the correct code:
(a) Only 1 & 3 (b) Only 1 & 2
(c) Only 1, 2 & 4 (d) All of the above

 

2. Consider the following statements related to
13th finance commission recommendations and
select the correct answer:
1. The share of states in net proceeds of
shareable central taxes shall be 32 per cent
in each of the financial years from 201011
to 201415.
2. Local bodies should be transferred 2.28%
of the divisible pool of taxes.
3. State taxes should be divided between
states and local bodies.
Select the correct code:
(a) Only 1 & 2
(b) Only 2 & 3
(c) Only 1 & 3
(d) All of the above

3.A strong intellectual property regime is a
prerequisite for creation of global IP from India.
It has also become a requirement under WTO.
Which of the following steps need to be taken
in this context?
1. Improve IP management and protection
mechanisms.
2. Develop global information database on IPs
accorded.
3. Strengthen and modernize the process of
patent examination and according patents.
Select the correct code:
(a) Only 1 & 2
(b) Only 2 & 3
(c) Only 1 & 3
(d) All of the above

4. Indian capital goods industry is facing severe
competition from Chinese companies over the
last few years. The major factors responsible
for increasing Chinese competitiveness are?
1. Artificially appreciated Chinese currency.
2. Much lower interest rates.
3. Simpler labour laws.
4. Tax advantages and subsidies given by the
Government.
Which of the above statements are correct?
(a) Only 1, 2 & 3
(b) Only 2, 3 & 4
(c) Only 1, 3 & 4
(d) All of the above

 

5. The present business regulatory environment
is seriously deficient for various reasons. Which
of the following are correct in this context?
1. Lack of coherence in business regulatory
governance across country.
2. Absence of national repository of business
regulations.
3. Ambiguous nature and vast scope of
business regulations.
Select the correct code:
(a) Only 1 & 2 (b) Only 2 & 3
(c) Only 1 & 3 (d) All of the above

6. Which of the following are the key challenges
identified in 12th five year plan faced by Indian
industries?
1. Many segments of the industry, especially
MSMEs, have limited information and
access to risk capital for sourcing/
developing and internalizing new
technologies.
2. Absence of national agenda and policy
framework to support innovation.
3. The Indian Industry has not given sufficient
importance to the documentation of
knowledge and creation of IP.
Select the correct code:
(a) Only 1 & 2 (b) Only 2 & 3
(c) Only 1 & 3 (d) All of the above

7. Policy interventions for MSMEs must be tailored
to their conditions. Government policies for
MSMEs should therefore help them improve
their technological capabilities by focusing on
which of the following steps.
1. Providing access to risk capital.
2. Improving Industry/research institute/
academia interaction, mostly in clusters
3. Stimulating demand/providing scale
through similar treatment in government
purchases.
Select the correct code:
(a) Only 1 & 2
(b) Only 2 & 3
(c) Only 1 & 3
(d) All of the above

 

8. Consider the following statements about ‘ValueAdded
Tax VAT’.
1. VAT is a type of consumption tax.
2. The amount of valueadded
tax that the
user pays is the cost of the product, less
any of the costs of materials used in the
product that have already been taxed.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 & 2 (d) Neither 1 nor 2

9. Consider the following statements about
Minimum Alternate Tax.
1. The concept of MAT was introduced under
the Income Tax Act.
2. The intent to introduce MAT was to ensure
that no tax payer with substantial income
can avoid tax liability.
Which of the above statements is/are correct?:
(a) Only 1 (b) Only 2
(c) Both 1 & 2 (d) Neither 1 nor 2

10. Which of the following features about the Right
of Children to Free and Compulsory Education
Act (RTE Act) are correct?
1. Every child of the age 614
years shall have
a right to free and compulsory education
in a neighborhood school till the
completion of elementary & secondary
education.
2. The appropriate government and the local
authority shall establish within such area
or limits of neighborhood three years.
3. If shall be the duty of every guardian or
parent to admit or cause to be admitted to
his or her child or ward to an elementary
and secondary education in the
neighborhood school.
4. No teacher shall engage himself or herself
in private tuition or private teaching
activity.
5. No school or person shall while admitting
a child, collect any capitation fee and
subject the child or his or her parent or
guardian to any screening procedure.
Select the correct code:
(a) Only 1, 2 & 3 (b) Only 3, 4 & 5
(c) Only 2, 4 & 5 (d) All of the above

 

Explanation

 

1. (d)

2. (d)

3. (d)
Exp.: 12th plan recommend Also,
in order to leverage
the benefits of IP:
• Build awareness about IP through
education and training.
• Create national IP mission to continually
evolve the IP strategy of the nation.
• Encourage joint IP filings by industry/
academia/research institutes.
• Encourage the formation of companies
specializing in IPs (through tax incentives).
• Exempt income tax for the income
generated from domestic IPs.

4. (b)
Exp.: The major factors responsible for increasing
Chinese competitiveness are:
• Artificially depreciated Chinese currency

• Tax advantages and Government subsidies
given by the Government
• Much lower interest rates
• Simpler labour laws
• Better infrastructure leading to lower cost
of power, transportation and cluster
approach helping specialization of labour
and engineering skills

5. (d)

6. (d)

7. (a)
Exp.:
• Providing access to risk capital
• Setting up of standards for the industry
• Improving Industry/research institute/
academia interaction, mostly in clusters
• Stimulating demand/providing scale
through preferential treatment in
government purchases.
• Modular industrial estates/laboratories
near premier technical institutions with the
required plug and play facilities.

8. (c)

9. (c)

10. (c)
Exp.: RTE Act is applicable for only elementary
education.
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