Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

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

Equilibrium price may not change even when market demand happens to change.

  1. True

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

True.
Equilibrium price may not change with a change in market demand, if the market supply changes in a proportion equal to the change in market demand.

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 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 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.

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

If in a budget the government's revenue receipts and non-debt capital revenue are less than the government's total expenditure, it is called _____.

  1. budget deficit

  2. revenue deficit

  3. fiscal deficit

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

A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits.