12th Grade > Economics - 2
UNDERSTANDING THE BUDGET MCQs
Total Questions : 27
| Page 2 of 3 pages
Answer: Option B. -> Contingency Fund of India
:
B
In case of a natural calamity such as an earthquake, money can be withdrawn from the Contingency Fund of India.
:
B
In case of a natural calamity such as an earthquake, money can be withdrawn from the Contingency Fund of India.
Answer: Option C. -> Borrowing by a government represents a situation of fiscal deficit.
:
C
When there is a fiscal deficit, the government gets to borrow.
:
C
When there is a fiscal deficit, the government gets to borrow.
Answer: Option A. -> indirect tax
:
A
A tax, the burden of which can be shifted on to others, is called indirect tax.
:
A
A tax, the burden of which can be shifted on to others, is called indirect tax.
Answer: Option C. -> value-added tax
:
C
Tax that is imposed on value added at the various stages of production is known as value-added tax.
:
C
Tax that is imposed on value added at the various stages of production is known as value-added tax.
Answer: Option C. -> Gift tax
:
C
Gift tax belonged to direct taxes which does not have much significance in terms of revenue yield. It is not a non-tax receipt.
:
C
Gift tax belonged to direct taxes which does not have much significance in terms of revenue yield. It is not a non-tax receipt.
Answer: Option A. -> Budget is a statement of expected annual receipts and expenditures of the government.
:
A
Budget mentions expected annual receipts and expenditures of the government.
:
A
Budget mentions expected annual receipts and expenditures of the government.
Answer: Option B. -> Situation B
:
B
A surplus budget is preferred over a balanced budget as this allows more money to be invested in liquid savings assets or illiquid assets like land. Situation B depicts a surplus budget whereas Situation A is a balanced budget. Therefore, Situation B is more desirable.
:
B
A surplus budget is preferred over a balanced budget as this allows more money to be invested in liquid savings assets or illiquid assets like land. Situation B depicts a surplus budget whereas Situation A is a balanced budget. Therefore, Situation B is more desirable.
Answer: Option B. -> Non-Plan Expenditure
:
B
Non-Plan Expenditure was the more important component of revenue expenditure.
:
B
Non-Plan Expenditure was the more important component of revenue expenditure.
Answer: Option C. -> High revenue deficit
:
C
A high revenue deficit implies a high future loan burden and heavy interest payments.
:
C
A high revenue deficit implies a high future loan burden and heavy interest payments.
Answer: Option A. -> True
:
A
The major expenditure of the Government is the share allocated to states by the Central Government.
:
A
The major expenditure of the Government is the share allocated to states by the Central Government.
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