CBSE Questions for Class 12 Commerce Economics Government Budget And The Economy Quiz 2 - MCQExams.com

Non-tax revenue includes profits of public sector undertaking.
  • True
  • False
The amount of which of the following reflects the overall budgetary position of the Govt of India at a given time?
  • Revenue deficit
  • Total amount of income tax collected
  • Capital deficit
  • Fiscal deficit
Indirect taxes are paid directly by people to the government.
  • True
  • False
In general, the duration of a budget is  _______ months.
  • twelve
  • six
  • nine
  • fifteen
As we all know, Govt of India pays special emphasis on the management of Fiscal Deficit. What is Fiscal Deficit?
  • The gap between projected or estimated GDP and actual GDP
  • The gap between the total number and value of the currency notes issued by the RBI uptill now over the number and value of those which are in actual circulation
  • The gap between the actual borrowings of the Govt of India and the expected expenditure for which provision is made in the budget
  • Excess of Govt's disbursement comprising current and capital expenditures over its current receipts (Tax/non-tax receipts)
Identify which of the following is not an example of tax revenue for the government? (Choose the correct alternative)
  • Wealth tax
  • Special assessments
  • Income tax
  • Corporate tax
There is a positive relationship between the demand for normal goods and change in income. 
  • True
  • False
Provision regarding levy of duties and taxes are announced in _______.
  • finance budget every year.
  • railway budget
  • appropriation account
  • none of the above
CENVAT was introduced in_________.
  • 2000
  • 1986
  • 1999
  • 2002
Marginal propensity to consume + Marginal propensity to save = ______.
  • Zero
  • One
  • Two
  • Minus one
When income increases the consumption expenditure _______.
  • increases
  • decreases
  • becomes equal
  • becomes zero
For ____________separate budget presents every year before the Parliament.
  • defence
  • railway
  • post and telegraph
  • all the three
First finance budget was presented by______.
  • RK Shanmukam Chetty
  • Jawaharlal Nehru
  • Govind Ballabh Pant
  • BR Ambedkar
License fee is paid to the government authority for a offering privilege.
  • True
  • False
Service tax was initially started with _______ tax rate.
  • 10%
  • 12%
  • 16%
  • 5%
Service tax was first introduced in_____.
  • 1993-94
  • 1994-95
  • 1995-96
  • 1998-99
Gift-tax was abolished in______.
  • 1995
  • 1993
  • 1998
  • 1988
Threshold level of service tax exemption for small service providers is _______.
  • Rs. 5 lakh
  • Rs. 8 lakh
  • Rs. 10 lakh
  • Rs. 2.20 lakh
_______ was/were first to be covered under service tax net in 1994-95.
  • Stock brokers services
  • Non-life insurance services
  • Telephone
  • All of the above
Budget deficit is equal to_______.
  • difference between total income and total expenditure
  • difference between total cost and total expenditure
  • difference between total export and import
  • difference between foreign exchange inflow and outflow
Central budget is presented by ____.
  • Finance Secretary
  • Revenue Secretary
  • Finance Minister
  • Prime Minister
Wealth-tax was introduced at the recommendation of ______.
  • Kaldor
  • Dr. L. K. Jha
  • Dr. Chelliah
  • UNO
Budget is presented on _____.
  • 1st March every year
  • 1st February every year
  • 1 st April
  • Last day of February
Insurance claim received on account of machinery damaged completely by fire ________________.
  • Capital receipt
  • Revenue receipt
  • Capital expenditures
  • Revenue expenditures
FERA was replaced by _______.
  • FEMA
  • FEMINA
  • FAMA
  • FENA
Wealth-tax was first introduced in India in _____.
  • May 1957
  • April 1980
  • Jan 1947
  • August 1947
Which of the following expenses are charged on the Consolidated Fund of India?
  • All the above
  • Salary and allowances of the President
  • Debt charges of the government of India
  • Sum payable as a result of judgement decree or award of a court
Insurance claim for stock damaged by fire is ______________.
  • Capital Receipt
  • Revenue Receipt
  • Advance Receipt
  • None of these
Which of these is a direct tax?
  • Income-tax.
  • VAT.
  • Excise duty.
  • Customs duty.
Income tax was first introduced in India in ______.
  • 1860
  • 1890
  • 1956
  • 1929
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