The term 'Base Effect' is related to the calculation of: MCQ with Answer and Explanation

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The term 'Base Effect' is related to the calculation of:

A. Balance of trade

B. Inflation rate

C. National income

D. Fiscal deficit

Answer: Option B

Solution (By JKSSB Mock Tests)

Base effect refers to the impact of the price level of the previous year (base) on the calculation of the inflation rate in the current year.

This question belongs to: Economy GK Economy Set 1

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Question #1

The term 'Quantitative Restrictions' on imports refer to:

A. Tariffs only

B. Limits on the quantity or value of goods that can be imported

C. Export subsidies

D. Exchange rate controls only

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Correct Answer: Option B

Explanation:
Quantitative restrictions (QRs) are non-tariff barriers that limit the volume or value of imports, such as quotas and licensing requirements.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Tax Deduction and Collection Account Number' is used for:

A. filing income tax returns only

B. getting PAN

C. depositing TDS and TCS

D. opening a bank account

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Correct Answer: Option C

Explanation:
TAN is used for depositing tax deducted or collected at source.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'zero-based budgeting' was first introduced in India in the budget of:

A. 1985-86

B. 2001-02

C. 1986-87

D. 1991-92

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Correct Answer: Option C

Explanation:
Zero-based budgeting was introduced in the Union Budget 1986-87.

This question belongs to: Economy GK Economy Set 1

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