CBSE Questions for Class 12 Commerce Economics Government Budget And The Economy Quiz 6 - MCQExams.com

Which type of expenditure is incurred by the government for the economic and social development of the country?
  • Non-development expenditure
  • Non-plan expenditure
  • Development expenditure
  • Revenue expenditure
__________ receipts are those monetary receipts which either creates a liability or leads to a reduction in the assets of the government.
  • Revenue
  • Capital
  • Tax
  • Non-tax
____________ refers to all those revenue receipts of the government which are not a part of the tax receipts.
  • Taxable revenue
  • Non-tax revenue
  • Revenue from disinvestment
  • All of the above
The expenditure incurred by the government which is out of the scope of government plans due to calamities is termed as __________.
  • plan expenditure
  • capital expenditure
  • non-plan expenditure
  • non-development expenditure
___________ refers to the claim of the government on the property of a deceased person, in case, no legal heir or will is left behind.
  • Escheat
  • Estate duty
  • Revenue from deceased
  • Capital receipts
Which of the following is a component of the capital receipts of the government?
  • Borrowings
  • Disinvestment
  • Recovery of loans
  • All of the above
____________ expenditure is incurred for the smooth functioning of the government departments and its various services.
  • Capital
  • Development
  • Revenue
  • Plan
Government expenditure is undertaken for ___________.
  • consumption purpose
  • investment purpose
  • either A or B
  • neither A nor B
Government's consumption expenditure is incurred on:
i. Defence services
ii. Judiciary system
iii. Construction on roads
iv. Public utilities
v. Telecom infrastructure development
vi. Provision of social security
  • i, ii, iii & v
  • i, ii, iv, and vi
  • i, ii, iii, v, & vi
  • i, ii, ii, iv, v & vi
Grants, a part of the revenue expenditure of the government, refers to all the grants given by the state government to the central government.
  • True
  • False
Which among the following is a component of revenue expenditure of the government?
  • Expenditure on general services
  • Expenditure on economic services
  • Grants
  • All of the above
Capital expenditure is majorly of developmental nature.
  • True
  • False
Expenditure incurred by the government for the provision of essential services like judiciary, defence, and administration is termed as ____________.
  • plan expenditure
  • non-development expenditure
  • non-plan expenditure
  • development expenditure
Government expenditure is a component of the ____________ in the economy
  • aggregate supply
  • aggregate income
  • aggregate demand
  • all of the above
"Policies of surplus budget during inflation" is a part of which objective of government budget? 
  • Economic Growth
  • Economic Stability
  • Reducing Regional Disparities
  • Reallocation of Resources
Which one of the following is not an objective of government budget?
  • Reallocation of resources
  • Economic Stability
  • Increasing regional disparities
  • Economic Growth
Union Budget is the budget of _______________.
  • Central Government
  • Local Government
  • State Govemment
  • Election Commission
Budget Deficit means__________.
  • Total Expenditure -Total Receipts
  • Capital Expenditure - Capital Receipts
  • Total Expenditure -Total Receipts (excluding borrowings)
  • Total Expenditure - Revenue Receipts
If estimated government receipts are more than estimated government expenditure, it is said to be a_______.
  • Surplus Budget
  • Deficit Budget
  • Balanced Budget
  • None of these
Which of the following are the components of a budget?
  • Capital Budget
  • Revenue Budget
  • Both (a) and (b)
  • Neither (a) nor (b)
Disinvestment by government means _____.
  • Selling of its fixed capital assets
  • Selling of shares of public enterprises held by it
  • Selling of its buildings
  • All the above
In CSGL Account, ''S'' Stands for..........
  • Subsidiary
  • Securities
  • Scheduled
  • Stock
Select the major reasons for price rise in most of the developing economies from the list given below:
Follow-up to the policy of deficit financing together with the burden of carrying huge non-developmental expenditures
Printing of fresh currencies to meet their expenditures
Levels of aggregate production lagging behind the levels of simultaneous aggregate demand.
  • Only $$1$$
  • $$1$$ and $$2$$
  • Only $$3$$
  • $$1, 2$$ and $$3$$
Select the most popular and prevalent combination of taxation and expenditure by governments across the world today.
  • Progressive Taxation with Regressive Expenditure
  • Proportional Taxation with Proportional Expenditure
  • Progressive Taxation with Progressive Expenditure
  • Regressive Taxation with Regressive Expenditure
Select the incorrect statements about 'capital consumption' from the given choices, using the code given below:
The situation when due to the losses of a company in consecutive years make it obliged to pay its current expanses using its capital base.
A situation when the listed firms under report their losses so that they can take higher benefits of depreciation.
The process by which a company shows higher loss in its operation to withholds payments of dividends to its various share holders.
  • 1 and 2
  • 2 and 3
  • 1 and 3
  • 1,2 and 3
Which of the following is/ are included in the capital budget of the Government of India?
Expenditure on acquisition of assets like roads, buildings, machinery, etc.
Loans received from foreign governments
Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below.
  • $$1$$ only
  • $$2$$ and $$3$$ only
  • $$1$$ and $$3$$ only
  • $$1, 2$$ and $$3$$
As per the provisions of the FRBM Act. along with the Budget and Demands for Grants the Gol needs to lay which of the following statements before the Parliament in each financial year. select the correct answer using the code given below:
Fiscal Policy Strategy Statement IFPSS)
Medium Term Fiscal Policy Statement I MTFPS)
Macroeconomic Framework Statement (MFS)
  • 1 and 2
  • 2 and 3
  • 1,2 and 3
  • None of the above
Which of the following is correct about the 'committed expenditures' of the government?
Expenditures on interest payment due to internal and external borrowings.
Expense in the name of the 'charged expenditure'.
Expenditures due to pensions and provident fund liabilities.
  • Only 1
  • Only 2
  • 1 and 3
  • 1, 2 and 3
Which of the following is/are correct about India's 'primary deficit'?
This is the fiscal deficit after deducting the cost of interest payment.
Falling fiscal deficit and rising primary deficit is considered good.
Interest payment constitutes around 82 per cent of India's fiscal deficit.
  • Only 1
  • Only 2
  • 1 and 2
  • 1,2 and 3
Select the incorrect statement/ statements about the fiscal policy of the modern economies using the code given below:
As development comes in, there are lesser challenges on the expenditure front for the governments.
More development means more government expenditure.
Governments in the developed countries have been able to limit their expenditures due to higher levels of development.
  • $$1$$ and $$2$$
  • Only $$2$$
  • $$1$$ and $$3$$
  • Only $$3$$
0:0:1


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