The Government: Budget and the Economy Test

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The Government: Budget and the Economy Test - 25

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Weekly Quiz Competition

Question 1
1 / -0

Public investment is also known as ______.

A
government investment

B
investment by private individuals

C
investment by public sector enterprise

D
none of the above

Solution

Public investment means funding and allocating resources by government for projects and services that the private sector cannot successfully deliver on its own. These projects are usually large in scale and the private sector does get involved in most of them.
Question 2
1 / -0

_______________ expenditure is the expenditure which does not create any physical or financial assets or do not reduce any liability.

A
Plan

B
Revenue

C
Non-plan

D
None of the above

Solution

Revenue expenditure are all such types of government expenditure that does not create any assets for the government or does not cause any reduction in the liability of the government. For examples - Interest payment, defence purchases etc.
Question 3
1 / -0

The concept of balanced budget has been advocated by the _____________ economists.

A
classical

B
Keynesian

C
modern

D
none of the above

Solution

The classical economist advocated and proposed the concept of balanced where according to them, a balanced budget refers to a budget where the government expenditure and government revenue are equal and there is no surplus budget or deficit budget in the economy.
Question 4
1 / -0

_____________ economists believed that the policy of balanced budget may not always be suitable for the economy.

A
Classical

B
Modern

C
Neo-classical

D
None of the above

Solution

The classical economist advocated and proposed the concept of balanced where according to them, a balanced budget refers to a budget where the government expenditure and government revenue are equal and there is no surplus budget or deficit budget in the economy. They believed that for some types of economies the policy of balanced budget may not be suitable.
Question 5
1 / -0

A __________ budget is useful during periods of high inflation.

A
deficit

B
balanced

C
suprlus

D
zero-based

Solution

Surplus Budget is the type of budget where the expected government revenue is greater than expected government expenditure due to which there is a surplus in the budget. Surplus budget is regarded as a positive indicator for the economy as it can be used during inflation through increased revenue that can soak liquidity from the economy and decrease the purchasing power.
Question 6
1 / -0

The budget which has gaps between the government revenue and public expenditure is termed as the ___________ budget.

A
balanced

B
unbalanced

C
constant

D
none of the above

Solution

Unbalanced budget is the type of budget where government expenditure is not equal to government revenue. These includes
(i) Surplus Budget: In this type of budget, government revenue is greater than government expenditure due to which there is a surplus in the budget.
(ii) Deficit budget: In this type of budget, government expenditure is greater than government revenue due to which there is a deficit in the budget.
Question 7
1 / -0

Which among the following is a type of government budget?

A
Balanced budget

B
Unbalanced budget

C
Family budget

D
Both A & B

Solution

There are two types of budget in general.

1. Balanced Budget: In this type of budget, government expenditure is equal to government revenue.
2. Unbalanced budget: In this type of budget, government expenditure is not equal to government revenue.

(i) Surplus Budget: In this type of budget, government revenue is greater than government expenditure due to which there is a surplus in the budget.

(ii) Deficit budget: In this type of budget, government expenditure is greater than government revenue due to which there is a deficit in the budget.
Question 8
1 / -0

The budget where the government revenue is equal to the government expenditure is termed as ___________.

A
balanced budget

B
unbalanced budget

C
constant budget

D
none of the above

Solution

Budget is an statement of the estimates of the government receipts and government expenditure during the period of the financial year. Balanced Budget is the type of budget where government expenditure is equal to government revenue.
Question 9
1 / -0

When the estimated government receipts are more than the estimated government expenditure, the budget is known to be a ___________ budget.

A
surplus

B
balanced

C
deficit

D
zero-based

Solution

Surplus Budget is the type of budget where the expected government revenue is greater than expected government expenditure due to which there is a surplus in the budget. Surplus budget is regarded as a positive indicator for the economy.
Question 10
1 / -0

____________ of the Constitution of India, requires the central government to prepare the 'Annual Financial Statement' of the country.

A
Article 172

B
Article 116

C
Article 112

D
None of the above

Solution

According to Article 112 of the Constitution of India, the central government has to prepare the annual financial statement of the country following the standard format and mentioning the required details adhering to the budget of the country.

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Re-Attempt Weekly Quiz Competition

The Government: Budget and the Economy Test - 25

Result

The Government: Budget and the Economy Test - 25

Score

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Rank

-

SHARING IS CARING

Question 1

government investment

investment by private individuals

investment by public sector enterprise

none of the above

Solution

Question 2

Plan

Revenue

Non-plan

None of the above

Solution

Question 3

classical

Keynesian

modern

none of the above

Solution

Question 4

Classical

Modern

Neo-classical

None of the above

Solution

Question 5

deficit

balanced

suprlus

zero-based

Solution

Question 6

balanced

unbalanced

constant

none of the above

Solution

Question 7

Balanced budget

Unbalanced budget

Family budget

Both A & B

Solution

Question 8

balanced budget

unbalanced budget

constant budget

none of the above

Solution

Question 9

surplus

balanced

deficit

zero-based

Solution

Question 10

Article 172

Article 116

Article 112

None of the above

Solution

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