Economics Government Budget and the Economy MCQ Question Answers

1. When government spends more than it collects by way of revenue, it incurs __

2. What is the annual statement of the government’s fiscal revenue and fiscal expenditure known as?

3. Which of the following is the capital expenditure?

4. Full form of SLR

5. Which of the following is a correct measure of primary deficit?

6. Capital budget consists of:

7. Which expenditure is committed and can’t be reduced?

8. Government deficit can be reduced by an increase in ______or reduction in _________.

9. The amount collected by the government as taxes and duties is known as _______

10. Borrowing in the government budget is referred as:

11. An economy in which there is both the private sector and the Government is known as a

12. Budgetary deficits must be financed by

13. How many types of revenue receipts are there?

14. What refers to the excess of government’s revenue expenditure over revenue receipts?

15. Which is a component of Budget?

16. The intervention of the government whether to expand demand or reduce it constitutes the

17. __________consist of interest payments minus interest receipts by the government on net domestic lending

18. Examples of such goods are national defence, roads, government administration etc. which are referred to as

19. Non-plan capital expenditure covers which of the following Service?

20. _________= Net borrowing at home + Borrowing from RBI + Borrowing from abroad