ICSE XII MCQ Quiz Hub

1. The classical theory is based on the assumption of:
Say’s the law of market
Flexibility in wage rates
Flexibility in interest rate
All of the above

2. “Supply creates its own demand”. This statement was given by the economist:
Keynes
Pigou
J. B.Say
Adam Smith

3. When an economy they’re to save all its extra income then investment calculation will be:
1
Uncertain
0
Infinite

4. The relation between consumption and savings are:
Inverse
Direct
Inverse and direct both
Neither inverse nor direct.

5. Income and employment are determined by:
Total demand
Total supply
Total demand and total supply both
By market demand

6. Which monetary measure is to be adopted in correcting Inflationary
Increase in Bank Rate
Selling of Securities in Open Market
Increase in Cash Reserve Ratio
All the above

7. Which fiscal measure is to be adopted in correcting the Inflationary Gap?
Reduction in Public Expenditure
Increase in taxes
Increase in Public debt
All of these

8. An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as
Budget
Income estimates
Account
Expenditure

9. Which of the following is an example of direct tax?
VAT
Excise duty
Entertainment tax
Wealth tax

10. What is the period of a fiscal year?
1 April to 31 March
1 January to 31 December
1 March to 28 February
None of these

11. When government spends more than it collects by way of revenue, it incurs ______
Budget surplus
Budget deficit
Capital expenditure
Revenue expenditure

12. The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______
Interest
Taxes
Spending
Borrowings

13. Which of the following is the component of a budget?
Fiscal budget
Capital budget
Both of these
None of these

14. What is the annual statement of the government’s fiscal revenue and fiscal expenditure known?
Budget
Fiscal Budget
Capital Budget
All of these

15. How many types of revenue receipts are there?
2
3
4
6

16. The amount collected by the government as taxes and duties is known as _______
Capital receipts
Tax revenue receipts
Non-tax revenue receipts
All of these

17. The amount collected by the government in the form of interest, fees, and dividends is known as ________
Tax-revenue receipts
Capital receipts
Non-tax revenue receipts
None of these

18. Borrowing in the government budget is:
Revenue deficit
Fiscal deficit
Primary deficit
Deficit in taxes

19. The non-tax revenue in the following is:
Export duty
Import duty
Dividends
Excise

20. The primary deficit in a government budget will be zero, when _______
Revenue deficit is zero
Net interest payments are zero
Fiscal deficit is zero
Fiscal deficit is equal to interest payment

21. Direct tax is called direct because it is collected directly from:
The producers on goods produced
The sellers on goods sold
The buyers of goods
The income earners

22. Financial Year in India is:
April I to March 31
January 1 to December 31
October 1 to September 30
None of the above

23. Which objectives government attempts to obtain by Budget
To Promote Economic Development
Balanced Regional Development
Redistribution of Income and Wealth
All the above

24. Which is a component of Budget?
Budget Receipts
Budget Expenditure
Both (a) and (b)
None of the above

25. Which is a component of the Budget Receipt?
Revenue Receipt
Capital Receipt
Both (a) and (b)
None of the above

26. Tax revenue of the Government includes :
Income Tax
Corporate Tax
Excise Duty
All of these

27. Which is included in the Direct Tax?
Income Tax
Gift Tax
Both (a) and (b)
Excise Duty

28. Which is included in Indirect Tax?
Excise Duty
Sales Tax
Both (a) and (b)
Wealth Tax

29. The expenditures which do not create assets for the government is called :
Revenue Expenditure
Capital Expenditure
Both (a) and (b)
None of the above

30. Direct tax is :
Income Tax
Gift Tax
Both (a) and (b)
None of these

31. In India, one rupee note is issued by:
Reserve Bank of India
Finance Ministry of Government of India
State Bank of India
None of these

32. Capital budget consist of:
Revenue Receipts and Revenue Expenditure
Capital Receipts and Capital Expenditure
Direct and Indirect Tax
None of these

33. Which of the following is an indirect tax?
Excise Duty
Sales Tax
Custom Duty
All of these

34. Which type of expenditure is made in bridge construction?
Capital Expenditure
Revenue Expenditure
Both (a) and (b)
None of the above

35. Which of the following budget is suitable for developing economies?
Deficit Budget
Balanced Budget
Surplus Budget
None of these

36. What is the duration of a Budget?
Annual
Two Years
Five Years
Ten Years

37. Which of the following is included in fiscal policy?
Public Expenditure
Tax
Public Debt
All of these

38. Which of the following is the capital expenditure of the government?
Interest Payment
Purchase of House
Expenses on Machinery
All of the above

39. The budget may include:
Revenue Deficit
Fiscal Deficit
Primary Deficit
All of these

40. Which of the following statement is true?
Fiscal deficit is the difference between total expenditure and total receipts
Primary deficit is the difference between total receipt and interest payments
Fiscal deficit is the sum of primary deficit and interest payment
All of these

41. Budget:
is a description of income-expenditure of government
is a document of the economic policy of the government
is a description of non-programs of the government
All of these

42. In an unbalanced budget:
Income is greater than expenditure
Expenditure is higher relative to income
Deficit is covered by loans or printing of notes
Only (b) and (c)

43. Which is included in indirect tax?
Income tax
Wealth tax
Excise Duty
Gift tax

44. Which one of the following is a pair of direct tax?
Excise duty and Wealth Tax
Service Tax and Income Tax
Excise Duty and Service Tax
Wealth Tax and Income Tax

45. Which of the following is not a revenue receipt?
Recovery of Loans
Foreign Grants
Profits of Public Enterprise
Wealth Tax

46. Which of the following is a correct measure of the primary deficit?
Fiscal deficit minus revenue deficit
Revenue deficit minus interest payments
Fiscal deficit minus interest payments
Capital expenditure minus revenue expenditure

47. The duration of the Government budget is:
5 years
2 years
1 year
10 years

48. Budget speech in Lok Sabha is given by:
President
Prime Minister
Finance Minister
Home Minister

49. Professional tax is imposed by:
Central Government
State Government
Municipal Corporation
Gram Panchayat

50. From the following which is included in the direct tax:
Income Tax
Gift Tax
Both (a) and (b)
Excise Tax