CBSE Questions for Class 12 Commerce Economics Government Budget And The Economy Quiz 5 - MCQExams.com

General subsidy received from Govt. is ______________.
  • Capital Receipt
  • Revenue Receipt
  • Advance Receipt
  • None of these
B/R collected is___________.
  • Capital Receipt
  • Revenue Receipt
  • Advance Receipt
  • None of these
__________________ expenditures are those expenditures of the government which lead to creation of physical or financial assets or reduction of liabilities.
  • Plan
  • Revenue
  • Capital
  • Non-plan
Which of the following are the constituents of the budget in India?
  • Annual statement of accounts for the current year.
  • Annual statement of accounts for the preceding year.
  • Estimates of revenue and expenditure for the current year.
  • All of the above
The word budget is derived from the ___________ word 'bougette'.
  • Latin
  • German
  • French
  • none of the above
Budget is a/an _____________ statement of expenditure and revenue of the government prepared by the financial authority of the country.
  • annual
  • semi-annual
  • quarterly
  • monthly
____________ of the Constitution of India, requires the central government to prepare the 'Annual Financial Statement' of the country.
  • Article 172
  • Article 116
  • Article 112
  • None of the above
_______________ expenditure is the expenditure which does not create any physical or financial assets or do not reduce any liability.
  • Plan
  • Revenue
  • Non-plan
  • None of the above
The concept of balanced budget has been advocated by the _____________ economists.
  • classical
  • Keynesian
  • modern
  • none of the above
A __________ budget is useful during periods of high inflation.
  • deficit
  • balanced
  • suprlus
  • zero-based
_____________ economists believed that the policy of balanced budget may not always be suitable for the economy.
  • Classical
  • Modern
  • Neo-classical
  • None of the above
The classical economists considered the balanced budget to be neutral in its effects on the economy.
  • True
  • False
The budget which has gaps between the government revenue and public expenditure is termed as the ___________ budget.
  • balanced
  • unbalanced
  • constant
  • none of the above
A surplus budget is useful in correcting inflationary gap by lowering the level of _____________.
  • taxation
  • effective demand
  • aggregate supply
  • income inequality
Which among the following is a type of government budget?
  • Balanced budget
  • Unbalanced budget
  • Family budget
  • Both A & B
The classical economists believed that the government can rescue the people in times of economic distortions through unbalanced budgets.
  • True
  • False
The budget where the government revenue is equal to the government expenditure is termed as ___________.
  • balanced budget
  • unbalanced budget
  • constant budget
  • none of the above
When the estimated government receipts are more than the estimated government expenditure, the budget is known to be a ___________ budget.
  • surplus
  • balanced
  • deficit
  • zero-based
Revenue receipts of the government are classified into:
  • Tax revenue and borrowings
  • Tax and non-tax revenue
  • Borrowings and recovery of loans
  • Non-tax revenue and recovery of loans
_____________ budget includes receipts of the government through tax and non-tax sources and that expenditure which doesn't affect the assets and liabilities of the government.
  • Revenue
  • Capital
  • Both A & B
  • Neither A nor B
A deficit budget leads to an increase in the liability of the government or a decrease in its reserves.
  • True
  • False
Capital receipts are regular and recurring in nature.
  • True
  • False
When the estimated government receipts are less than the estimated government expenditure, the budget is termed as ___________ budget.
  • surplus
  • deficit
  • rolling
  • balanced
Which of the following is a component of the capital budget?
  • Capital receipts
  • Revenue expenditure
  • Capital expenditure
  • Both A & C
A deficit budget proves to be useful during the periods of ____________.
  • inflation
  • high employment
  • depression
  • none of the above
Government budget comprises of which of the following?
  • Revenue budget
  • Capital budget
  • Administration budget
  • Both A & B
What are ways that can be used by the government to correct inflationary gap using surplus budget?
  • Reduction in taxes
  • Increase in tax rates
  • Reduction in public expenditure
  • Both B & C
Tax revenue is the main source of regular receipts of the government.
  • True
  • False
Budget expenditure refers to the estimated expenditure of the government during a given fiscal year.
  • True
  • False
Which among the following is a source of non-tax revenue for the government?
  • Gifts and grants
  • Fees, fines and penalties
  • Interest and dividend on investments
  • All of the above
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