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
Direct tax is a tax which is imposed on
  • A
    None of these
  • B
    Individuals only
  • C
    Individuals and corporations
    Correct
  • D
    Corporations only
2
An example of a direct tax is
  • A
    VAT
  • B
    Sales tax
  • C
    Entertainment tax
  • D
    Income Tax
    Correct
3
The major source of Revenue receipts for the government is not
  • A
    Tax Revenue
  • B
    Income tax
  • C
    Profits
    Correct
  • D
    Wealth tax
4
Indirect tax is a tax whose
  • A
    The liability to pay and incidence do not lie on the same person
  • B
    The liability to pay lies on one and incidence lies on the other person
  • C
    The liability to pay and incidence do lie on the government
  • D
    The liability to pay and incidence do lie on the same person
    Correct
5
The policies useful to reduce inequalities of income are the
  • A
    Monetary policies
  • B
    Public distribution policies
  • C
    Budgetary policies
    Correct
  • D
    Foreign policies
6
Budgetary policies relate to
  • A
    Public expenditures only
  • B
    Taxes only
  • C
    Direct Taxes
  • D
    Taxes and public expenditures
    Correct
7
Budgetary policies are implemented by the
  • A
    Government
    Correct
  • B
    Private sector
  • C
    Foreign sector
  • D
    Finance Ministry
8
Revenue Receipts
  • A
    Create liability for the private sector
  • B
    Create liability for the government
  • C
    Do not create liability for the private sector
  • D
    Do not create liability for the government
    Correct
9
Capital Receipts
  • A
    Create liability for the private sector
  • B
    Create liability for the government
    Correct
  • C
    Do not create liability for the government
  • D
    Do not create liability for the private sector
10
Disinvestment is a
  • A
    Revenue Receipts
  • B
    Revenue Expenditure
  • C
    Capital Receipts
    Correct
  • D
    Capital Expenditure
11
Loan by govt.
  • A
    Revenue Receipts
  • B
    Capital Receipts
    Correct
  • C
    Revenue Expenditure
  • D
    Capital Expenditure
12
Revenue Expenditure
  • A
    Creates assets for the private sector
  • B
    Do not create assets for the government
    Correct
  • C
    Create liability for the private sector
  • D
    Create assets for the government
13
Capital Expenditure
  • A
    Create assets for the private sector
  • B
    Create assets for the government
    Correct
  • C
    Do not create assets for the government
  • D
    Do not create assets for the private sector
14
transfer payment is a
  • A
    Capital Expenditure
  • B
    Revenue Receipts
  • C
    Capital Receipts
  • D
    Revenue Expenditure
    Correct
15
Repayment of loan by the govt.
  • A
    Revenue Receipts
  • B
    Capital Receipts
  • C
    Capital Expenditure
    Correct
  • D
    Revenue Expenditure