CBSE Questions for Class 12 Commerce Economics Government Budget And The Economy Quiz 7 - MCQExams.com

Which of the following action/actions can be taken by the government to reduce the persistent challenge of budget deficit?
Reducing the duties on imports
Rationalising subsidies
Cutting the expenditure of revenue
Merging the existing welfare schemes
  • Only1
  • 1 and 2
  • 2 and 4
  • 2.3 and 4
Primary deficit equals :
(Choose the correct alternatives)
  • Borrowings
  • Interest Payments
  • Borrowing less interest payments
  • Borrowings and interest payments both
Primary deficit in a government budget will be zero, when ___________ .(Choose the correct alternative)
  • Revenue deficit is zero
  • Net interest payments are zero
  • Fiscal deficit is zero
  • Fiscal deficit is equal to interest payment
Assertion (A) : Surplus is an amount of something left over when requirements have been met.
Reason (R) : Surplus is an excess of production or supply.
  • Both A and R are true and is the correct explanation of A
  • Both A and R are true but is not the correct explanation of A
  • A is true but R is false
  • A is false but R is true
Budget receipts refer to _____.
  • Actual money receipts of the government from all sources during a fiscal year
  • Actual capital receipts of the government from all sources during a fiscal year
  • Estimated money receipts of the government from all sources during a fiscal year
  • Estimated capital receipts of the government from all sources during a fiscal year
Borrowing by the government is a _____.
  • Revenue receipts
  • Capital receipts
  • Revenue expenditure
  • Capital expenditure
Law & order and defence of the country are the examples of _____.
  • Private goods
  • Public goods
  • Economic goods
  • Non-economic goods
Capital receipts _____.
  • Do not create any liability for the government
  • Do not cause any reduction in assets of the government
  • Cause reduction in assets of the government
  • Both A and B
Which of the following is the objective of a government budget?
  • Provision of private goods
  • High rate of GDP growth
  • Maximisation of profits of public enterprises
  • Increasing revenue of the government
Revenue budget includes _____.
  • Revenue receipts of the government
  • revenue expenditure of the government
  • Capital receipts of the government
  • Both C and C
Government budget is a _____.
  • Statement of actual receipts of the government during a fiscal year
  • Statement of actual annual expenditure of the government during a fiscal year
  • Statement of estimated annual receipts and estimated annual expenditure of the government during a fiscal year
  • None of these
Public goods are those goods _____.
  • Which satisfy collective needs of the people
  • Which satisfy needs of the government
  • Which are available only to those people who are below poverty line
  • None of these
Those receipts which do not create any corresponding liability for the government are called _____.
  • Revenue receipts
  • Capital receipts
  • General receipts
  • Both A and B
Estimated expenditure of the government which causes a reduction in liabilities of the government is called _____.
  • Revenue expenditure
  • Capital expenditure
  • Plan expenditure
  • Non-plan expenditure
Dividends received from Public Sector Undertakings (PSUs) are a part of the government's _____.
  • Non-tax revenue receipts
  • Tax receipts
  • Capital receipts
  • Capital expenditure
Which of the following is an item of revenue expenditure?
  • Expenditure on land and building
  • Construction of a school
  • Interest payments
  • Repayment of loan
Which of the following is correct in case of revenue expenditure?
  • It reduces liability of the government
  • It does not create any asset for the government
  • It creates asset for the government
  • None of these
Budget expenditure is related to _____.
  • Development as well as non-development programmes of the government
  • Either development or non-development programmes of the government
  • Neither development nor non-development programmes of the government
  • None of these
The process of budget making after re-evaluating every item of expenditure in every financial year is known as ___________.
  • performance budgeting
  • deficit budgeting
  • zero based budgeting
  • fresh budgeting
Primary deficit in a government budget is :
(Choose the correct alternative)
  • Revenue expenditure Revenue receipts
  • Total expenditure Total receipts
  • Revenue deficit Interest payments
  • Fiscal deficit Interest payments
What does an increase in the ratio of revenue deficit to gross fiscal deficit indicate?
  • An increase in investment
  • An increase in the utilisation of borrowed funds for revenue purposes
  • An increase in the utilisation of borrowed funds for imports
  • An increase in the utilisation of borrowed funds for lending
Match List-I with List-II and select the correct answer using the code given the lists.
List-I (Type of budget deficit)List-II (Measurement of deficit)
A. Revenue Deficit$$1$$. Gap between total expenditure and total receipts
B. Fiscal Deficit$$2$$. Excess of revenue expenditure over revenue receipts
C. Primary Deficit$$3$$. Fiscal deficit less interest payments
D. Budgetary Deficit$$4$$. Difference between revenue receipts plus certain non-debt capital receipts and the total expenditure including loans, net of repayments
  • A-$$1$$, B-$$2$$, C-$$3$$, D-$$4$$
  • A-$$2$$, B-$$4$$, C-$$3$$, D-$$1$$
  • A-$$2$$, B-$$3$$, C-$$4$$, D-$$1$$
  • A-$$1$$, B-$$4$$, C-$$3$$, D-$$2$$
Payment into the business by proprietor is ______ receipt.
  • Revenue receipts
  • Capital receipt
  • Deferred Revenue receipts
  • None of the above
Determine the Fiscal Deficit.
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  • 5,14,344
  • 3,51,200
  • 12,000
  • 1,51,144
Fiscal deficit as a percent of GDP in 2010-11 was _______.
  • 5.6%
  • 2.7%
  • 4.8%
  • 4.1%
0:0:1


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