Government Budget and the Economy Test

Result

Government Budget and the Economy Test - 3

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Weekly Quiz Competition

Question 1
1 / -0

Public expenditure can be unplanned only

A
Insufficient information

B
Can’t say

C
False

D
True

Solution

Public expenditure can also be planned expenditure which refers to the expenditure which relates to the specific plans and programmes of development by the government , like construction of hospital, construction of roads, flyovers etc.
Question 2
1 / -0

An Unbalanced budget is one where

A
Estimated revenues = estimated expenditure

B
Estimated revenues are not equal to the estimated expenditure

C
Estimated revenues < estimated Receipts of the govt.

D
All of them

Solution

Unbalanced budget is one when estimated revenues are not equal to the estimated expenditures. It may be a deficit or surplus budget. When estimated expenditure is greater than estimated revenues, it is a deficit budget and when estimated revenues are greater than estimated expenditure, then it is a surplus budget.
Question 3
1 / -0

One of the other two components of Revenue budget are

A
Income budget

B
Budget Expenditure

C
Investment Expenditure

D
Revenue expenditure

Solution

Revenue budget has two components. Revenue receipts and reveneue expenditure.
Revenue expenditure refers to the estimated expenditure of the government in a fiscal year which does not create assets or cause a reduction in liabilities.
Question 4
1 / -0

Fiscal deficit

A
Indicates borrowings by the govt.

B
Indicates investments by the govt.

C
Indicates revenue of the govt.

D
Indicates deficit in expenditures by the govt.

Solution

it is equal to the excess of total expenditure over the sum of revenue receipts and capital receipts excluding borrowings. It actually reflects the total borrowings of the govt during the financial year.
Question 5
1 / -0

One of the objectives of the government budget is

A
Reallocation of income and wealth

B
Redistribution of income and wealth

C
Redistribution of income only

D
Regeneration of income and wealth

Solution

The distribution of income and wealth is higly unequal in countries like India. By imposing taxes on the rich and giving subsidies to the poor, the government redistributes income in favour of the poorer sections of the society.
Question 6
1 / -0

One of the other two components of government Revenue in the budget are

A
Budget receipts

B
Expenditure receipts

C
Revenue Expenditure

D
Capital receipts

Solution

Government revenue is classified as revenue receipts and capital receipts. Capital receipts are further classified as i) recovery of loans, ii) borrowings and other liabilities, iii) other receipts. Capital receipts either create a liability or cause a reduction in the assets of the government.
Question 7
1 / -0

Which of the following is a budget type?

A
Balanced budget

B
Surplus budget

C
Deficit budget

D
All of them

Solution

A budget can be a balanced budget, deficit budget or a surplus budget.
Question 8
1 / -0

One of the other two components of Capital budget are

A
Capital expenditure

B
Budget Expenditure

C
Income budget

D
Investment Expenditure

Solution

capital expenditure refers to the estimated expenditure of the government in a fiscal year which creates assets or causes a reduction in liabilities.
Question 9
1 / -0

One of the other two components of government expenditure in the budget are

A
Revenue Expenditure

B
Expenditure receipts

C
Capital Expenditure

D
Budget receipts

Solution

Capital expenditure is one of the components of the budget expenditure. It refers to the estimated expenditure of the government in a fiscal year which creates assets or causes a reduction in the liabilities.
Question 10
1 / -0

Direct tax is a tax whose

A
The liability to pay and incidence do not lie on the same person

B
The liability to pay and incidence do lie on the government

C
The liability to pay and incidence do lie on the same person

D
The liability to pay lies on one and incidence lies on the other person

Solution

A direct tax is a tax, the final burden of which is borne by the person on whom it is imposed. For eg. income tax is a direct tax.

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Re-Attempt Weekly Quiz Competition

Government Budget and the Economy Test - 3

Result

Government Budget and the Economy Test - 3

Score

-

Rank

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SHARING IS CARING

Question 1

Insufficient information

Can’t say

False

True

Solution

Question 2

Estimated revenues = estimated expenditure

Estimated revenues are not equal to the estimated expenditure

Estimated revenues < estimated Receipts of the govt.

All of them

Solution

Question 3

Income budget

Budget Expenditure

Investment Expenditure

Revenue expenditure

Solution

Question 4

Indicates borrowings by the govt.

Indicates investments by the govt.

Indicates revenue of the govt.

Indicates deficit in expenditures by the govt.

Solution

Question 5

Reallocation of income and wealth

Redistribution of income and wealth

Redistribution of income only

Regeneration of income and wealth

Solution

Question 6

Budget receipts

Expenditure receipts

Revenue Expenditure

Capital receipts

Solution

Question 7

Balanced budget

Surplus budget

Deficit budget

All of them

Solution

Question 8

Capital expenditure

Budget Expenditure

Income budget

Investment Expenditure

Solution

Question 9

Revenue Expenditure

Expenditure receipts

Capital Expenditure

Budget receipts

Solution

Question 10

The liability to pay and incidence do not lie on the same person

The liability to pay and incidence do lie on the government

The liability to pay and incidence do lie on the same person

The liability to pay lies on one and incidence lies on the other person

Solution

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