Government Budget And Economy CBSE Questions & Answers

Government Budget And Economy

This is Economics Class 12 Government Budget and Economy CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Tax is not a capital receipt as it does not create assets for the govt. It is
  • A
    FALSE
  • B
    Can’t say
  • C
    Insufficient information
  • D
    1
    Correct
2
A surplus budget
  • A
    Reduces the aggregate demand
    Correct
  • B
    Reduces the aggregate supply
  • C
    Raises the aggregate demand
  • D
    Raises the aggregate supply
3
A deficit budget
  • A
    Combats recession
    Correct
  • B
    Combats disasters
  • C
    Combats inflation
  • D
    Combats wars
4
Fiscal deficit is not a part of budgetary deficit but budgetary deficit is a part of fiscal deficit. Do you agree?
  • A
    Yes
    Correct
  • B
    Need more information
  • C
    No
  • D
    Can’t say
5
One of the objectives of the government budget is
  • A
    Reallocation of resources
    Correct
  • B
    Reallocation of wealth
  • C
    Reallocation of income
  • D
    Redistribution of resources
6
One of the objectives of the government budget is
  • A
    To achieve social growth
  • B
    To achieve political growth
  • C
    To achieve social welfare
  • D
    To achieve economic growth
    Correct
7
One of the objectives of the government budget is
  • A
    Management of foreign enterprises
  • B
    Management of private enterprises
  • C
    Management of public enterprises
    Correct
  • D
    Management of domestic enterprises
8
An example of a direct tax is
  • A
    Toll Tax
    Correct
  • B
    Interest
  • C
    Excise duty
  • D
    Service tax
9
An example of a direct tax is
  • A
    Income Tax
    Correct
  • B
    VAT
  • C
    Sales tax
  • D
    Entertainment tax
10
An example of a direct tax is
  • A
    Toll Tax
    Correct
  • B
    Interest
  • C
    Excise duty
  • D
    Service tax
11
Direct tax is a tax which is imposed on
  • A
    Individuals and corporations
    Correct
  • B
    Corporations only
  • C
    Individuals only
  • D
    None of these
12
Revenue Receipts
  • A
    Do not create any reduction in assets for the private sector
  • B
    Do not create any reduction in assets for the government
    Correct
  • C
    Create any reduction in assets for the private sector
  • D
    Create any reduction in assets for the government
13
Capital Receipts
  • A
    Create any reduction in assets for the private sector
  • B
    Do not create any reduction in assets for the private sector
  • C
    Create any reduction in assets for the government
    Correct
  • D
    Do not create any reduction in assets for the government
14
Revenue Expenditure
  • A
    Do not create any reduction in assets for the government
    Correct
  • B
    Create reduction in assets for the private sector
  • C
    Creates reduction in assets for the private sector
  • D
    Create reduction in assets for the government
15
Capital Expenditure
  • A
    Do not create any reduction in assets for the government
  • B
    Create any reduction in assets for the private sector
  • C
    Does not create any reduction in assets for the government
    Correct
  • D
    Do not create any reduction in assets for the private sector