Tag: economics

Questions Related to economics

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

economics income-output determination public debt main feature of tax

  1. True

  2. False

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Correct Option: A
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.

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

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

  1. aggregate supply

  2. aggregate demand

  3. investment

  4. saving

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Correct Option: B
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.

The non-tax revenue in the following is: 

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

  1. Income Tax

  2. Corporate Tax

  3. Dividends

  4. Borrowings

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Correct Option: C

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

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

  1. Balanced budget

  2. Budget deficit

  3. Government debt

  4. Budget surplus

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Correct Option: C
Explanation:

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

Which of the following records the actual dollar expenditures, revenues, and deficits in a given period?

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

  1. Structural budget

  2. Cyclical budget

  3. Actual budget

  4. None of the above

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Correct Option: C
Explanation:

Actual budget records the actual dollar expenditures, revenues, and deficits in a given period.

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

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

  1. budget deficit

  2. effective revenue deficit

  3. primary deficit

  4. fiscal deficit

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Correct Option: B
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

Public finance means ______.

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

  1. people's money

  2. government's finance

  3. personal finance

  4. government and people's money

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Correct Option: B
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.

The person who presents the central budget in the Lok Sabha is __________.

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

  1. finance minister

  2. prime minister

  3. chief minister

  4. speaker

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Correct Option: A
Explanation:

The person who presents the central budget in the Lok Sabha is Finance Minister.

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 _____.

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

  1. budget deficit

  2. revenue deficit

  3. fiscal deficit

  4. primary deficit

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Correct Option: C
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.

The central budget has to be approved by both the Houses of Parliament before ______.

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

  1. March ${31}^{st}$

  2. April ${1}^{st}$

  3. March ${3}^{th}$

  4. March ${1}^{st}$

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Correct Option: A
Explanation:

The central budget has to be approved by both the Houses of Parliament before March 31st.