Test: Government Budget And Economy - 2


20 Questions MCQ Test Economy and Indian Economy (Prelims) by Shahid Ali | Test: Government Budget And Economy - 2


Description
This mock test of Test: Government Budget And Economy - 2 for UPSC helps you for every UPSC entrance exam. This contains 20 Multiple Choice Questions for UPSC Test: Government Budget And Economy - 2 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Government Budget And Economy - 2 quiz give you a good mix of easy questions and tough questions. UPSC students definitely take this Test: Government Budget And Economy - 2 exercise for a better result in the exam. You can find other Test: Government Budget And Economy - 2 extra questions, long questions & short questions for UPSC on EduRev as well by searching above.
QUESTION: 1

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

Solution:

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.

QUESTION: 2

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

Solution:

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.

QUESTION: 3

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

Solution:

The Government budget has two components: The Revenue Account: which includes Revenue Receipts (Tax and Non Tax Revenue) and Revenue Expenditure (Plan Revenue Expenditure and Non- Plan Revenue Expenditure).

QUESTION: 4

The major source of Revenue receipts for the government is

Solution:
QUESTION: 5

Direct tax is a tax whose

Solution:
QUESTION: 6

Direct tax is a tax which is imposed on

Solution:
QUESTION: 7

An example of a direct tax is

Solution:
QUESTION: 8

The major source of Revenue receipts for the government is not

Solution:
QUESTION: 9

Indirect tax is a tax whose

Solution:

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.

QUESTION: 10

The policies useful to reduce inequalities of income are the

Solution:
QUESTION: 11

Budgetary policies relate to

Solution:
QUESTION: 12

Budgetary policies are implemented by the

Solution:

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.

QUESTION: 13

Revenue Receipts

Solution:
QUESTION: 14

Capital Receipts

Solution:
QUESTION: 15

Disinvestment is a

Solution:
QUESTION: 16

Loan by govt.

Solution:

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)

QUESTION: 17

Revenue Expenditure

Solution:
QUESTION: 18

Capital Expenditure

Solution:
QUESTION: 19

transfer payment is a

Solution:

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.

QUESTION: 20

Repayment of loan by the govt.

Solution:

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.

Related tests