Class 12 Economics MCQ Chapter 6 Budget and the Economy

Class 12 Economics MCQ Chapter 6 Budget and the Economy Question Answer English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Economics MCQ Chapter 6 Budget and the Economy and select need one. AHSEC Class 12 Economics Objective Type Solutions As Per AHSEC New Book Syllabus Download PDF. AHSEC Economics MCQ Class 12.

Class 12 Economics MCQ Chapter 6 Budget and the Economy

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Economics Multiple Choice Solutions are part of All Subject Solutions. Here we have given AHSEC Class 12 Economics MCQ in English for All Chapters, You can practice these here.

Budget and the Economy

Chapter: 6

PART – A: INTRODUCTORY MICROECONOMICS

1. A government budget is best described as the.

(i) Monthly cash book of ministries. 

(ii) Five-year plan document. 

(iii) Annual financial statement of estimated receipts and expenditure. 

(iv) Statement of only capital projects.

Ans: (iii) Annual financial statement of estimated receipts and expenditure.

2. India’s Union Budget covers the period.

(i) 1 Jan–31 Dec. 

(ii) 1 Apr–31 Mar. 

(iii) 1 Jul–30 Jun. 

(iv) 1 Oct–30 Sep.

Ans: (ii) 1 Apr–31 Mar.

3. Which is not a feature of the budget?

(i) One-year coverage. 

(ii) Requires legislative approval. 

(iii) Lists only tax receipts. 

(iv) Shows estimated receipts and expenditure.

Ans: (iii) Lists only tax receipts.

4. A core objective not pursued through the budget is.

(i) Reallocation of resources. 

(ii) Redistribution of income. 

(iii) Price stability. 

(iv) Maximizing private monopoly power.

Ans: (iv) Maximizing private monopoly power.

5. Public goods are characterized by.

(i) Excludability only. 

(ii) Rivalry only. 

(iii) Non-excludability and non-rivalry. 

(iv) Perfect divisibility.

Ans: (iii) Non-excludability and non-rivalry.

6. Impact of a tax refers to.

(i) Ultimate burden bearer. 

(ii) Initial imposition point. 

(iii) Legal incidence only. 

(iv) Passing on the burden.

Ans: (ii) Initial imposition point.

7. Shifting of a tax means.

(i) Government changes the tax law. 

(ii) Taxpayer changes residence. 

(iii) Burden passed via price to others. 

(iv) Paying tax in installments.

Ans: (iii) Burden passed via price to others.

8. A revenue receipt is one that.

(i) Creates a liability. 

(ii) Reduces assets. 

(iii) Creates no liability and does not reduce assets. 

(iv) Always comes from borrowings.

Ans: (iii) Creates no liability and does not reduce assets.

9. Which of the following is a capital receipt (non-debt)?

(i) GST collections. 

(ii) Dividends from PSUs. 

(iii) Disinvestment proceeds. 

(iv) Court fees.

Ans: (iii) Disinvestment proceeds.

10. Which item is not a revenue receipt?

(i) Income tax. 

(ii) Customs duty. 

(iii) Recovery of loans. 

(iv) License fees.

Ans: (iii) Recovery of loans.

11. Which is a revenue expenditure?

(i) Repayment of past debt. 

(ii) Salary payments. 

(iii) Equity infusion in a PSU. 

(iv) Construction of a highway.

Ans: (ii) Salary payments.

12. Which is a capital expenditure?

(i) Subsidy on fertilizer. 

(ii) Pension payments. 

(iii) Loan to a state government. 

(iv) Office stationery.

Ans: (iii) Loan to a state government.

13. Non-tax revenue includes.

(i) Excise duty. 

(ii) Corporation tax. 

(iii) Dividends and profits. 

(iv) GST.

Ans: (iii) Dividends and profits.

14. A direct tax example is.

(i) Customs duty. 

(ii) Income tax. 

(iii) GST on services. 

(iv) Excise duty.

Ans: (ii) Income tax.

15. A progressive tax is one where.

(i) Rate falls as base rises. 

(ii) Rate is constant. 

(iii) Rate rises as base rises. 

(iv) Rate is random.

Ans: (iii) Rate rises as base rises.