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Class 12 commerce Economics

Total questions: 59

Worksheet time: 52mins

Name
Class
Date
1.

A Govt. Budget is prepared for a fiscal year running from :

a)

1st January to 31st December

b)

1st April to 31st December

c)

1st April to 31st March

d)

1st January to 30th April

2.

Direct tax is called direct because it is collected directly from :

a)

The producers on goods produced

b)

the sellers on goods sold

c)

The buyers of goods

d)

The income earners

3.

Which of the following is an indirect tax?

a)

Corporation tax

b)

Value Added tax

c)

Income tax

d)

Wealth tax

4.

Pension payment is an example of :

a)

Plan expenditure

b)

Revenue expenditure

c)

Capital expenditure

d)

Non-plan expenditure

5.

Subsidies are an example of :

a)

Revenue expenditure

b)

Capital expenditure

c)

Plan expenditure

d)

None of them

6.

Which out of the following is a non-developmental expenditure?

a)

Scientific research

b)

Social Welfare

c)

Administration

d)

None of them

7.

Repayment of loan is an example of :

a)

Capital expenditure

b)

Non plan expenditure

c)

Revenue expenditure

d)

Plan expenditure

8.

Interest payment are subtracted from which deficit to arrive at Primary Deficit :

a)

Revenue Deficit

b)

Capital deficit

c)

Fiscal Deficit

d)

None of these

9.

Borrowing in government budget is :

a)

Revenue Deficit

b)

Fiscal deficit

c)

Primary Deficit

d)

Deficit in taxes

10.

Which of the following statement is true?

a)

Loan from IMF is a Revenue Receipt

b)

Higher revenue deficit necessarily leads to higher fiscal deficit

c)

Borrowing by a government represents a situation of fiscal deficit.

d)

Revenue deficit is the excess of capital receipts over the revenue receipts

11.

While financing a deficit, under which measure government can print more currency :

a)

Deficit financing

b)

Disinvestment

c)

By issuing bonds

d)

none of them

12.

Identify which of the following statement is true?

a)

Fiscal deficit is difference between planned revenue expenditure and planned revenue receipts.

b)

Fiscal deficit is difference between total planned expenditure and total planned receipts

c)

Primary deficit is the difference between total planned receipt and interest payment

d)

Fiscal deficit is the sum of primary deficit and interest payment

13.

The receipts which neither create any liability nor lead to any reduction in assets are called

a)

revenue receipts

b)

capital receipts

c)

both (a) and (b)

d)

none of these

14.

In the government budget, if revenue receipts = ₹100 lakh, capital receipt = ₹50 lakh and revenue deficit = ₹25 lakh, how much is the revenue expenditure?

a)

75 lakh

b)

150 lakh

c)

125 lakh

d)

50 lakh

15.

In government, budget primary deficit is ₹10000 crore, interest payment is ₹5000 crore, then fiscal deficit is ₹ _______ crore.

a)

15000

b)

16000

c)

18000

d)

5000

16.

Construction of flyover is a capital expenditure of the government.

a)

True

b)

False

17.

Capital expenditure increases the liabilities of the government.

a)

True

b)

False

18.

Primary deficit indicates the government's inability to meet its regular and recurring expenditure.

a)

True

b)

False

19.

Which of the following is not true for fiscal deficit? A fiscal deficit:

a)

represents the borrowings of the government

b)

is the difference between total expenditure and total receipts of the government

c)

is the difference between total expenditure and total receipts other than borrowings

d)

increase future liability of the government

20.

Which of the following is a non tax eceipts?

a)

Gift tax

b)

sale tax

c)

Donations

d)

Excise duty

21.

Which of the fololowing are the objective of government budget?

a)

Distrtibution of Income nd wealth

b)

Economic stability

c)

GDP growth

d)

all of these

22.

Ptrogressive tax is a tax whch is-

a)

Charged at decreasing rate when income of individual increase

b)

Charged at increaing rate when income of individual increase

c)

A fixed percentage of an individual income

d)

none of these.

23.

Which of following is diret tax?

a)

Income tax

b)

Excise duty

c)

Custom duty

d)

Sale tax

24.

Capital receipts is that receipts of the Government-

a)

creats a liability

b)

reduce the assets

c)

Both (1) and (2)

d)

none

25.

Which of the following are capital receipts of the Government?

a)

Recovery of loan

b)

Borrowings

c)

Disinvestment

d)

all of these

26.

Deficit budget refers to that situation in which governments budget expenditure is -

a)

less than its budget receipts

b)

more than its budget receipts

c)

equal its budget receipts

d)

none of these

27.

Fiscal deficit =

a)

Total expenditure - total receipts other than borrowing

b)

revenue expenditure - revenue receipts

c)

capital expenditure - capital receipts

d)

fiscal deficit - intrest payment

28.

In which of the following ways , can deficit in budget be financed?

a)

Borrowings from RBI

b)

Borrowing from public

c)

Borrowing from IMF

d)

all of the above

29.

Difference between fiscal deficit and intrest payment is called-

a)

revenue deficit

b)

fiscal deficit

c)

primary deficit

d)

none of the above

30.

(a)   receipts do not create any corresponding liability for the government.

31.

(a)   Expenditure creats assets for the government.

32.

The programme and polocies of the government as presented in the budget are know as (a)   policy of the government.

33.

If increase in income leads to reduction in tax rate , such types og tax system is know as---------

(a)  

34.

Which of the following is not non tax revenue receipts of government?

a)

Excise duty

b)

Escheat

c)

Special assessment

d)

Fees and fines

35.

Recovery of loan is:

a)

Revenue receipt

b)

Capital receipt

c)

Revenue expenditure

d)

Capital expenditure

36.

Payment of loan is:

a)

Revenue expenditure

b)

Capital expenditure

c)

Revenue receipts

d)

Capital receipts

37.

When incidence and burden of tax falls on different persons that type of tax is called:

a)

Direct tax

b)

Indirect tax

c)

Regressive tax

d)

None of these

38.

Fiscal deficit is equal to

a)

Direct tax

b)

Interest

c)

Borrowings

d)

All of these

39.

Primary deficit=fiscal deficit_

a)

Loan

b)

Interest payments

c)

Borrowings

d)

None of these

40.

When budget receipts are greater than budget expenditure such type of budget is called:

a)

Balanced budget

b)

Deficit budget

c)

Surplus budget

d)

None of these

41.

Union budget is budget of

a)

Central government

b)

Local government

c)

State government

d)

Union territory government

42.

Surplus budget

a)

Is good for developing country

b)

Controls inflation

c)

Don't control inflation

d)

Don't promote economic stability

43.

Balanced budget is not suitable for (a)   country

44.

Capital gain tax is

a)

Direct tax

b)

Progressive tax

c)

Regressive tax

d)

Value added tax

45.

Which of the following is a non tax eceipts?

a)

Gift tax

b)

sale tax

c)

Donations

d)

Excise duty

46.

Which of the fololowing are the objective of government budget?

a)

Distrtibution of Income nd wealth

b)

Economic stability

c)

GDP growth

d)

all of these

47.

Ptrogressive tax is a tax whch is-

a)

Charged at decreasing rate when income of individual increase

b)

Charged at increaing rate when income of individual increase

c)

A fixed percentage of an individual income

d)

none of these.

48.

Which of following is diret tax?

a)

Income tax

b)

Excise duty

c)

Custom duty

d)

Sale tax

49.

Which of the following is a part of the revenue expenditure in the indian government budget?

a)

Intreast payment

b)

Defence Purchase

c)

Wage bill of the Government

d)

All of these

50.

Capital receipts is that receipts of the Government-

a)

creats a liability

b)

reduce the assets

c)

Both (1) and (2)

d)

none

51.

Which of the following are capital receipts of the Government?

a)

Recovery of loan

b)

Borrowings

c)

Disinvestment

d)

all of these

52.

Deficit budget refers to that situation in which governments budget expenditure is -

a)

less than its budget receipts

b)

more than its budget receipts

c)

equal its budget receipts

d)

none of these

53.

Fiscal deficit =

a)

Total expenditure - total receipts other than borrowing

b)

revenue expenditure - revenue receipts

c)

capital expenditure - capital receipts

d)

fiscal deficit - intrest payment

54.

In which of the following ways , can deficit in budget be financed?

a)

Borrowings from RBI

b)

Borrowing from public

c)

Borrowing from IMF

d)

all of the above

55.

Difference between fiscal deficit and intrest payment is called-

a)

revenue deficit

b)

fiscal deficit

c)

primary deficit

d)

none of the above

56.

(a)   receipts do not create any corresponding liability for the government.

57.

(a)   Expenditure creats assets for the government.

58.

The programme and polocies of the government as presented in the budget are know as (a)   policy of the government.

59.

If increase in income leads to reduction in tax rate , such types og tax system is know as---------

(a)