Macro

Government Budget

Easy

The sales of bread have increased from 10 units to 15 units. Suppose the government imposed a unit tax of Rs. 5 on current production, then the total tax that the firm must pay to the government is?

Rs. 50

Rs. 75

Rs. 25

Rs. 15

✅ Correct Option: 2

A unit tax is a fixed tax imposed on each unit of current production.

Current production = 15 units (sales have increased from 10 to 15 units, so current production is 15 units)

Unit tax = Rs. 5 per unit

$\text{Total Tax} = \text{Current Production} \times \text{Unit Tax}$

$\text{Total Tax} = 15 \times 5 = {₹75}$

2022: 19 July Shift 2

The government in its budget has announced the construction of seven textile parks under the scheme of mega-investment textile parks. Which objective of the government budget is most likely being reflected here ? (Choose the correct alternative).

2025: 13 May Shift 1

GST is the amalgamation of which of the following taxes?

2026: 19 May Shift 2

Match the LIST-I with LIST-II

LIST-I (Budgetary theory)	LIST-II (Consequence/implication)
A. Redistribution objective	I. Public provision
B. Allocation Function	II. Government spending more than revenue
C. Budget deficit	III. Intervention to change aggregate demand
D. Stabilization Function	IV. Progressive income taxation

Choose the correct answer from the options given below:

2025: 16 May Shift 1

Which of the following is a debt creating capital receipt of the government?

2023: 28 May Shift 2

One kind of deficit in the annual Budget will have to be financed through borrowings. It indicates the total borrowing requirements of the government from all sources it is known as :

2026: 11 May Shift 1

Arrange the following statements in correct sequence with respect to government budget's objective.

A. When demand exceeds for available output under the condition of full employment.

B. May give rise to inflation in the economy.

C. The intervention of the government to stabilize the economy.

D. The overall level of employment and prices depend upon the level of aggregate demand.

Choose the correct answer from the options given below:

The sales of bread have increased from 10 units to 15 units. Suppose the government imposed a unit tax of Rs. 5 on current production, then the total tax that the firm must pay to the government is?

Solution

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