20 MCQS ON BUDGET

What is a financial statement that outlines a government's estimated revenue and spending for a specific period?

Explain the difference between a balanced budget and a surplus budget.

What is the main purpose of national debt?

Compare and contrast the advantages and disadvantages of balanced budgets and deficit budgets.

Evaluate the potential risks and benefits of a government borrowing heavily to finance large infrastructure projects.

Do you think it is more important for a government to prioritize a balanced budget or economic growth? Explain your answer.

Discuss the challenges that developing countries face in managing their national debt and how these challenges can impact their economic development.

When does the government typically resort to deficit budgeting?

• To reduce unemployment

• To control inflation

• To increase savings

• To finance a national emergency

What is the primary purpose of a budget?

• To control inflation

• To raise revenue for the government

• To redistribute income

• To foster economic growth and development

Which principle is NOT used in horizontal revenue allocation?

• Population size

• Landmass

• Ethnic diversity

• Derivation