12th Grade > Economics - 2
UNDERSTANDING THE BUDGET MCQs
Total Questions : 27
| Page 1 of 3 pages
:
If the government borrows money from the World Bank, it increases the liability of the government as this money has to be paid back. Therefore it falls in the capital budget.
Answer: Option C. -> Dividends
:
C
Out of the given options, dividend falls under the non-tax revenue of the government.
:
C
Out of the given options, dividend falls under the non-tax revenue of the government.
Answer: Option D. -> All of these
:
D
All of the options are objectives of the government budget.
:
D
All of the options are objectives of the government budget.
Answer: Option B. -> 1 - a, 2 - a, 3 - b, 4 - c
:
B
Out of the given options, borrowings and recovery of loans impact the balance sheet and are capital receipts. Customs duty is a revenue receipt and construction of roads is a capital expenditure.
:
B
Out of the given options, borrowings and recovery of loans impact the balance sheet and are capital receipts. Customs duty is a revenue receipt and construction of roads is a capital expenditure.
Answer: Option B. -> Non-Plan Expenditure
:
B
Defence expenditure falls under Non-Plan Expenditure.
:
B
Defence expenditure falls under Non-Plan Expenditure.
Answer: Option B. -> 10
:
B
Revenue Deficit = Revenue Expenditure -(Tax Revenue + Non-tax Revenue)
Revenue Deficit = 80 - (50+20) = 80 - 70 = 10
:
B
Revenue Deficit = Revenue Expenditure -(Tax Revenue + Non-tax Revenue)
Revenue Deficit = 80 - (50+20) = 80 - 70 = 10
Answer: Option B. -> Indirect tax
:
B
Service tax which is applied to the sales of services is an indirect tax.
:
B
Service tax which is applied to the sales of services is an indirect tax.
Answer: Option C. -> Borrowing
:
C
Out of the given options, borrowings increase the liabilitiesas the government is obliged to repay the borrowed funds.
:
C
Out of the given options, borrowings increase the liabilitiesas the government is obliged to repay the borrowed funds.
Answer: Option D. -> paper taxes
:
D
Taxes like wealth tax and gift tax in India which carry their significance only on paper and have no significance in terms of revenue yield are called paper taxes.
:
D
Taxes like wealth tax and gift tax in India which carry their significance only on paper and have no significance in terms of revenue yield are called paper taxes.
Question 10. The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).
A. Revenue Expenditure = 25,000
B. Capital Receipts = 30,000
C. Capital Expenditure = 35,000
D. Revenue Receipts = 20,000
E. Interest Payments = 10,000
F. Borrowings = 20,000
A. Revenue Expenditure = 25,000
B. Capital Receipts = 30,000
C. Capital Expenditure = 35,000
D. Revenue Receipts = 20,000
E. Interest Payments = 10,000
F. Borrowings = 20,000
Answer: Option B. -> Rs 10,000 crore
:
B
Budgetary Deficit = Total Expenditures - Total Receipts
= (Revenue Expenditure + Capital Expenditure) - (Revenue Receipts + Capital Receipts)
= (Rs 25,000 crore + Rs 35,000 crore) - (Rs 20,000 + Rs 30,000 crore)
= Rs 60,000 crore - Rs 50,000 crore
= Rs 10,000 crore
:
B
Budgetary Deficit = Total Expenditures - Total Receipts
= (Revenue Expenditure + Capital Expenditure) - (Revenue Receipts + Capital Receipts)
= (Rs 25,000 crore + Rs 35,000 crore) - (Rs 20,000 + Rs 30,000 crore)
= Rs 60,000 crore - Rs 50,000 crore
= Rs 10,000 crore
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