CUET Economics: MacroGovernment Budget. Free, no login required.

Match the LIST-I with LIST-II

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Which of the following statements explain the objectives (functions) of government budget?

A. Provide goods which are non-rivalrous in nature

B. Intervenes to stabilise the aggregate demand

C. Can stabilise economy through change in bank rate

D. Can change distribution of income and bring distribution which is fair by society

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In a hypothetical economy, the total expenditure is Rs.700 crore, revenue receipts are Rs. 300 crore, non-debt capital receipts is Rs. 250 crore and net interest liability is Rs. 50 crore. The primary deficit for such an economy would be ___________.

Revenue receipts are those receipts which___________.

Calculate the gross fiscal deficit from the following given values (in Rs. crore).

Total expenditure= 10,00,000

Revenue receipts= 8,00,000

Non-debt creating capital receipts= 3,50,000

Identify the goods that are excludable and rival in nature from the following:

Which one of the following item is not a part of non-plan expenditure?

If the quantity of any good remains available the same after consuming by people such goods are called?

The change in equilibrium output that results from a unit increase or decrease in both taxes and government spending is called.

Expenditures incurred for purposes other than the creation of physical or financial assets of the central government are classified as which of the following?

____________ is the difference between the government's total expenditure and its total receipts excluding borrowing.

The intervention of the government whether to expand demand or reduce it constitutes which of the following function.

Which of the following component is not part of non-planned expenditure?

Identify the government deficit calculated by the following formula:

Net borrowing at home + Borrowing from RBI + Borrowing from abroad.

Among the following which are the functions of government budget?

A. Allocation.

B. Redistribution.

C. Production.

D. Stabilisation.

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If investment falls, government spending can be raised so that autonomous expenditure and equilibrium income remain the same. This deliberate action to stabilise the economy is often referred to as:

From the following data about the budget, determine the primary deficit.

Which of the following is not a component of Capital Receipts?

When was the Fiscal Responsibility and Budget Management Act passed to help keep deficits under control ?

When a government spends more than it collections by way of revenue, it incurs a budget deficit. There are various measures that capture government deficit and they have their own implications for the economy. Figure out the statements which describe the nature of fiscal deficit in the economy.

A. Large portion of revenue deficit in fiscal deficit indicates larger investment in the economy.

B. It indicates the total borrowing requirements of the government from all sources.

C. It is calculated to obtain an estimate of borrowing on account of current expenditures exceeding revenues.

D. It is the difference between the government's total expenditure and its total receipts excluding borrowing.

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Match the LIST-I with LIST-II

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Match the LIST-I with LIST-II

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Government provides certain goods and services which cannot be provided by the market mechanism i.e. by exchange between individual consumers and producers. Which of the following is related to public goods?

The Proportional Income Tax, acts as an __________, a shock absorber because it makes disposable income, and thus consumer spending purposes less sensitive to fluctuation in GDP.

Gross Primary Deficit is equal to the difference between Gross Fiscal Deficit and:

Which Budget Deficit gives the total borrowing requirements of the government from all sources?

Choose the non-planned budgetary expenditure from the following:

(A) Central assistant to state.

(B) Defence Services.

(C) Subsidies.

(D) Salaries and Pensions.

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Match List-I with List-II

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When governments intervene to determine whether to expand demand or reduce it, constitutes which of the following governments functions?

Calculate the value of the government expenditure multiplier at a given MPC = 0.80 and tax rate = 0.25.