Bihar Board 12th Economics Objective Answers Chapter 8 Government Budget and the Economy

Bihar Board 12th Economics Objective Questions and Answers

Bihar Board 12th Economics Objective Answers Chapter 8 Government Budget and the Economy

Question 1.
Financial Year in India is :
(A) April I to March 31
(B) January 1 to December 31
(C) October 1 to September 30
(D) None of the above
Answer:
(A) April I to March 31

Question 2.
Which objectives government attempts to obtain by Budget
(A) To Promote Economic Development
(B) Balanced Regional Development
(C) Redistribution of Income and Wealth
(D) All the above
Answer:
(D) All the above

Question 3.
Which is a component of Budget ?
(A) Budget Receipts
(B) Budget Expenditure
(C) Both (a) and (b)
(D) None of the above
Answer:
(C) Both (a) and (b)

Question 4.
Which is a component of Budget Receipt ?
(A) Revenue Receipt
(B) Capital Receipt
(C) Both (a) and (b)
(D) None of the above
Answer:
(C) Both (a) and (b)

Question 5.
Tax revenue of the Government includes :
(A) Income Tax
(B) Corporate Tax
(C) Excise Duty
(D) All of these
Answer:
(D) All of these

Question 6.
Which is included in the Direct Tax ?
(A) Income Tax
(B) Gift Tax
(C) Both (a) and (b)
(D) Excise Duty
Answer:
(C) Both (a) and (b)

Question 7.
Which is included in Indirect Tax ?
(A) Excise Duty
(B) Sales Tax
(C) Both (a) and (b)
(D) Wealth Tax
Answer:
(C) Both (a) and (b)

Question 8.
The expenditures which do not create assets for the government is called :
(A) Revenue Expenditure
(B) Capital Expenditure
(C) Both (a) and (b)
(D) None of the above
Answer:
(A) Revenue Expenditure

Question 9.
Direct tax is :
(A) Income Tax
(B) Gift Tax
(C) Both (a) and (b)
(D) None of these
Answer:
(C) Both (a) and (b)

Question 10.
In India one rupee note is issued by :
(A) Reserve Bank of India
(B) Finance Ministry of Government of India
(C) State Bank of India
(D) None of these
Answer:
(B) Finance Ministry of Government of India

Question 11.
Capital budget consist of:
(A) Revenue Receipts and Revenue Expenditure
(B) Capital Receipts and Capital Expenditure
(C) Direct and Indirect Tax
(D) None of these
Answer:
(B) Capital Receipts and Capital Expenditure

Question 12.
Which of the following is an indirect tax ?
(A) Excise Duty
(B) Sales Tax
(C) Custom Duty
(D) All of these
Answer:
(D) All of these

Question 13.
Which type of expenditure is made in bridge construction ?
(A) Capital Expenditure
(B) Revenue Expenditure
(C) Both (a) and (b)
(D) None of the above
Answer:
(A) Capital Expenditure

Question 14.
Which of the following budget is suitable for development economies ?
(A) Deficit Budget
(B) Balanced Budget
(C) Surplus Budget
(D) None of these
Answer:
(A) Deficit Budget

Question 15.
What is the duration of a Budget ?
(A) Annual
(B) Two Years
(C) Five Years
(D) Ten Years
Answer:
(A) Annual

Question 16.
Which of the following is included in fiscal policy ?
(A) Public Expenditure
(B) Tax
(C) Public Debt
(D) All of these
Answer:
(D) All of these

Question 17.
Which of the following is capital expenditure of the government ?
(A) Interest Payment
(B) Purchase of House
(C) Expenses on Machinery
(D) All of the above
Answer:
(A) Interest Payment

Question 18.
Budget may include :
(A) Revenue Deficit
(B) Fiscal Deficit
(C) Primary Deficit
(D) All of these
Answer:
(D) All of these

Question 19.
Which of the following statement is true ?
(A) Fiscal deficit is the difference between total expenditure and total receipts
(B) Primary deficit is the difference between total receipt and interest payments
(C) Fiscal deficit is the sum of primary deficit and interest payment
(D) All of these
Answer:
(C) Fiscal deficit is the sum of primary deficit and interest payment

Question 20.
Budget:
(A) is a description of income-expenditure of government
(B) is a document of economic policy of government
(C) is a description of non-programmes of the government
(D) All of these
Answer:
(D) All of these

Question 21.
In an unbalanced budget:
(A) Income is greater than expenditure
(B) Expenditure is higher relative to income
(C) Deficit is covered by loans or printing of notes
(D) Only (b) and (c)
Answer:
(D) Only (b) and (c)

Question 22.
Which is included in indirect tax ?
(A) Income tax
(B) Wealth tax
(C) Excise Duty
(D) Gift tax
Answer:
(C) Excise Duty

Question 23.
Which one of the following is a pair of direct tax ?
(A) Excise duty and Wealth Tax
(B) Service Tax and Income Tax
(C) Excise Duty and Service Tax
(D) Wealth Tax and Income Tax
Answer:
(D) Wealth Tax and Income Tax

Question 24.
Which of the following is not a revenue receipt ?
(A) Recovery of Loans
(B) Foreign Grants
(C) Profits of Public Enterprise
(D) Wealth Tax
Answer:
(A) Recovery of Loans

Question 25.
Which of the following is a correct measure of primary deficit ?
(A) Fiscal deficit minus revenue deficit
(B) Revenue deficit minus interest payments
(C) Fiscal deficit minus interest payments
(D) Capital expenditure minus revenue expenditure
Answer:
(C) Fiscal deficit minus interest payments