Tag: government budget and economy

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Questions Related to government budget and economy

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Indifference curves can intersect each other.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Indifference curves cannot intersect each other as it would break down the indifference curve analysis. This is because the consumer would have more than one point on the indifference curve giving him a different level of satisfaction.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

What shows all possible combinations of two goods that can be bought by the consumer?

  1. Marginal utility curve

  2. Indifference curve

  3. Budget line

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The budget line shows all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

At the point of consumer's equilibrium indifference curve and budget curve are __________.

  1. passing through each other

  2. intersecting

  3. tangent

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Consumer equilibrium occurs where the indifference curve is tangent to the budget line, representing the highest utility achievable within the budget constraint.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The _______________ of the budget starts once the Finance and Appropriation Bills are passed.

  1. preparation

  2. enactment

  3. execution

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Once the budget is enacted into law, the government proceeds to the execution phase, where the funds are spent according to the approved budget.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The preparation of the budget by the Ministry of Finance, Government of India, starts in the month of _________________.

  1. January

  2. September

  3. December

  4. March
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The budget preparation process in India typically begins in September, when the Ministry of Finance issues the annual budget circular to various ministries and departments to initiate the estimation process.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Budget of the Delhi government is an example of _____________ budget.

  1. union

  2. state

  3. district

  4. national
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
State budget is the government budget which is prepared for a given financial year for a single state. The budget prepared by the state government is a state budget. Therefore, the budget of Delhi government is an example of state budget.
Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The revenue budget consists of capital receipts and capital expenditure.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

False.

Revenue shows all types of current receipts of the government and related expenditures. Revenue budget includes 'revenue receipts' and 'revenue expenditure'. 
Revenue receipts refers to all such types of money receipts that do not create any liability for the government or does not reduce any asset of the government. 

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. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The types of budget of the government are ______________.

  1. Union budget

  2. Plan budget

  3. Revenue budget

  4. Both A and B
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The type of budget of the government are: 

Union budget - The government budget which is prepared for a given financial year for the whole country is known as union budget. 
Plan Budget - The government budget which is prepared for a upcoming financial year with estimated receipts and expenditure is known as plan budget.