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Test: Government Budget And Economy - 2


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20 Questions MCQ Test Indian Economy for UPSC CSE | Test: Government Budget And Economy - 2

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Test: Government Budget And Economy - 2 - Question 1

One of the other two components of government Revenue in the budget are

Detailed Solution for Test: Government Budget And Economy - 2 - Question 1

Capital receipts accrue on realisation of assets which is nothing but source of funds. Further, when we sell any asset it is grouped under non-operating income. But, profit or loss on it would be released to the revenue account which in turn would be transferred to reserves. So, we are unlocking the value of asset i.e. economic benefit on such asset is actually realized. Economic benefit means 'Increase in revenue or decrease in operating cost' which is nothing but revenue in nature. So, it is also the component of government revenue.

 

The budget is divided into two parts — (i) Revenue Budget, and (ii) Capital Budget.

Test: Government Budget And Economy - 2 - Question 2

One of the two components of government expenditure in the budget are

Detailed Solution for Test: Government Budget And Economy - 2 - Question 2

A revenue expenditure is an amount that is expensed immediately—thereby being matched with revenues of the current accounting period. Routine repairs are revenue expenditures because they are charged directly to an account such as Repairs and Maintenance Expense.

Test: Government Budget And Economy - 2 - Question 3

One of the two components of government expenditure in the budget is

Detailed Solution for Test: Government Budget And Economy - 2 - Question 3

The budget has two broad components: Revenue budget and Capital budget. The revenue budget includes revenue expenditure and revenue receipts. The capital budget includes capital expenditure and capital receipts.

Test: Government Budget And Economy - 2 - Question 4

The major source of Revenue receipts for the government is

Test: Government Budget And Economy - 2 - Question 5

Direct tax is a tax whose

Test: Government Budget And Economy - 2 - Question 6

Direct tax is a tax which is imposed on

Test: Government Budget And Economy - 2 - Question 7

An example of a direct tax is

Test: Government Budget And Economy - 2 - Question 8

The major source of Revenue receipts for the government is not

Test: Government Budget And Economy - 2 - Question 9

Indirect tax is a tax whose

Detailed Solution for Test: Government Budget And Economy - 2 - Question 9

An indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax. The intermediary later files a tax return and forwards the tax proceeds to government with the return.

Test: Government Budget And Economy - 2 - Question 10

The policies useful to reduce inequalities of income are the

Test: Government Budget And Economy - 2 - Question 11

Budgetary policies relate to

Test: Government Budget And Economy - 2 - Question 12

Budgetary policies are implemented by the

Detailed Solution for Test: Government Budget And Economy - 2 - Question 12

The government makes agreements on budgetary policy when it takes office. Budgetary policy is determined by the government's expenditures and revenues plans and expected national and international economic developments over the next four years.

Test: Government Budget And Economy - 2 - Question 13

Revenue Receipts

Test: Government Budget And Economy - 2 - Question 14

Capital Receipts

Test: Government Budget And Economy - 2 - Question 15

Disinvestment is a

Test: Government Budget And Economy - 2 - Question 16

Loan by govt.

Detailed Solution for Test: Government Budget And Economy - 2 - Question 16

Capital receipts are a non-recurring incoming cash flow into your business, which leads to the creation of a liability (a debt to be paid in the future) and a decrease in company assets (resources that lead to capital gain)

Test: Government Budget And Economy - 2 - Question 17

Revenue Expenditure

Test: Government Budget And Economy - 2 - Question 18

Capital Expenditure

Test: Government Budget And Economy - 2 - Question 19

transfer payment is a

Detailed Solution for Test: Government Budget And Economy - 2 - Question 19

Transfer payment. In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income and wealth (payment) made without goods or services being received in return. These payments are considered to be non-exhaustive because they do not directly absorb resources or create output.

Test: Government Budget And Economy - 2 - Question 20

Repayment of loan by the govt.

Detailed Solution for Test: Government Budget And Economy - 2 - Question 20

Repayment of loan is also capital expenditure because it reduces liability. These expenditures are met out of capital receipts of the government including capital transfers from rest of the world.

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