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
Fiscal deficit
  • A
    Indicates borrowings by the govt.
    Correct
  • B
    Indicates deficit in expenditures by the govt.
  • C
    Indicates investments by the govt.
  • D
    Indicates revenue of the govt.
2
Fiscal deficit is equal to
  • A
    Excess of total expenditure over total revenue receipts
  • B
    Excess of total expenditure over total revenue receipts excluding borrowings
    Correct
  • C
    Excess of total expenditure over total receipts
  • D
    Excess of total expenditure over total revenue receipts including borrowings
3
Public expenditure can be planned and unplanned
  • A
    1
    Correct
  • B
    Insufficient information
  • C
    FALSE
  • D
    Can’t say
4
Public expenditure can be Development and Non-development
  • A
    1
    Correct
  • B
    Can’t say
  • C
    FALSE
  • D
    Insufficient information
5
Public expenditure can be planned only
  • A
    TRUE
  • B
    0
    Correct
  • C
    Can’t say
  • D
    Insufficient information
6
Public expenditure can be unplanned only
  • A
    Insufficient information
  • B
    TRUE
  • C
    Can’t say
  • D
    0
    Correct
7
Public expenditure can be Development only
  • A
    Can’t say
  • B
    TRUE
  • C
    Insufficient information
  • D
    0
    Correct
8
Public expenditure can be Non-development only
  • A
    Insufficient information
  • B
    Can’t say
  • C
    0
    Correct
  • D
    TRUE
9
Which of the following is a budget type?
  • A
    Deficit budget
  • B
    Balanced budget
  • C
    Surplus budget
  • D
    All of them
    Correct
10
Fiscal deficit includes borrowings. It is
  • A
    Insufficient information
  • B
    Can’t say
  • C
    1
    Correct
  • D
    FALSE
11
One of the Implication of Fiscal deficit is
  • A
    It maintains the supply of money in the economy
  • B
    It decreases the supply of money in the economy
  • C
    It does not affect the supply of money in the economy
  • D
    It increases the supply of money in the economy
    Correct
12
Another Implication of Fiscal deficit is
  • A
    it decreases financial burden for future generation
  • B
    it increases financial burden for future generation
    Correct
  • C
    it maintains financial burden for future generation
  • D
    it does not affect financial burden for future generation.
13
Fiscal deficit is unhealthy for economic development as
  • A
    it is a cause of deflation
  • B
    it is a cause of inflation
    Correct
  • C
    it is a cause of prosperity
  • D
    it is a cause of recession
14
A class of public expenditure is
  • A
    Revenue and budget expenditure
  • B
    investment and capital expenditure
  • C
    Revenue and capital expenditure
    Correct
  • D
    budget and capital expenditure
15
Revenue expenditure is incurred on normal functioning of the govt. Administration. It is
  • A
    Insufficient information
  • B
    FALSE
  • C
    1
    Correct
  • D
    Can’t say