Tag: public debt

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Multiple choice economics income-output determination public debt public debt main feature of tax

What would price ceiling lead to when the maximum price is fixed lower than the equilibrium price?

  1. Excess demand.

  2. Excess supply.

  3. Deficient demand.

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

Price ceiling means that a maximum price that can be charged for a product is fixed by the government. The sellers cannot charge a price beyond it. Price ceiling is done to help the people to get goods at a lower rate and save them from getting exploited. Hence, when the prices are reduced the demand for that commodity increases due to the mechanism of law of demand, while supply decreases, leading to excess demand.

Multiple choice economics income-output determination public debt public debt main feature of tax

In case of excess demand, equilibrium price must rise.

  1. True

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

True.
Excess demand generates pressure of demand on the existing supply. As an immediate impact, market price rises. It leads to extension of supply and contraction of demand. Finally, equilibrium is reached in the market where DX=SXDX=SX. This new equilibrium price happens to be higher than the initial equilibrium price.

Multiple choice economics income-output determination public debt public debt main feature of tax

Household expenditures on consumer goods and services during the current period is a part of _____________.

  1. aggregate supply

  2. aggregate demand

  3. investment

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

Aggregate demand refers to the total demand in the economy as a result of consumption expenditure of households, investments made and the government expenditure in a given year. The expenditure of households on consumption goods, in a given period is, thus, a part of aggregate demand in the economy for the given period of time.

Multiple choice legal studies arbitration, tribunal adjudication and alternate dispute resolution public debt public debt main feature of tax

Which one of the following is the main source of revenue in the states?

  1. Property Tax

  2. Excise Duty

  3. Sales Tax

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

States collect revenue within its territory on the subjects under List II or State List of Seventh schedule of the Constitution. Excise duty comes under Union List  whereas Property tax is generally levied by local authorities and not state government. So, the main source of revenue in the states is the sales tax which is a consumption tax imposed by the government on the sale of goods and services.  It is the tax imposed on the sale and purchase of goods within the state and different states have different sales tax laws for their states.

 It is levied by the Government. Sales tax is charged at both the levels of Legislation, Central and State. The tax imposed by the Central Government is known as the Central Sales Tax, whereas tax imposed by the states is called Sales Tax.

Multiple choice economics macro economic analysis public debt public debt main feature of tax

Which of the following consists of the total or accumulated borrowings by the government?

  1. Balanced budget

  2. Budget deficit

  3. Government debt

  4. Budget surplus
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Government debt is the amount of borrowings by government. It also known as public interest, national debt and sovereign debt.

Multiple choice social science the government budget and taxation public debt public debt main feature of tax

Which of the following is an administrative non-tax revenue?

  1. Gifts and grants

  2. Earnings from state enterprise

  3. Fines

  4. Surpluses
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Non Tax Revenue receipts are those revenue receipts which are not generated by taxing the public. Under administration, public authorities can raise some funds in the form of fines, fees and penalties.

Multiple choice economics government budget and economy public debt public debt main feature of tax

The difference between revenue deficit and grants for creation of capital assets is called _____.

  1. budget deficit

  2. effective revenue deficit

  3. primary deficit

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

Effective Revenue Deficit is the difference between revenue deficit and grants for the creation of capital assets. In other words, the Effective Revenue Deficit excludes those revenue expenditures which were done in the form of grants for the creation of capital assets.
It was introduced in the Budget for the first time in 2011-2012

Multiple choice economics government budget and economy public debt public debt main feature of tax

Public finance means ______.

  1. people's money

  2. government's finance

  3. personal finance

  4. government and people's money
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Public finance is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.