Economics MCQ Class 12 Chapter 5 | Government Budget and the Economy | Economics Quiz for Class 12 and Other Competitive Exams

Economics MCQ Class 12 Chapter 5: Check the below NCERT MCQ Questions for Economics MCQ Class 12 Chapter 5 with Answers Pdf free download. Economics MCQ Class 12 Chapter 5 Questions for Economics with Answers were prepared based on the latest exam pattern. We have provided Economics MCQ Class 12 Chapter 5 with Answers to help students understand the concept very well.

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Economics MCQ Class 12 Chapter 5

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1. Which objectives government attempts to obtain by Budget ?
(a) To Promote Economic Development
(b) Balanced Regional Development
(c) Redistribution of Income and Wealth
(d) All the above

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2. An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as ______.
(A) Budget
(B) Income estimates
(C) Account
(D) Expenditure

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

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4. Which of the following is an example of direct tax?
(A) VAT
(B) Excise duty
(C) Entertainment tax
(D) Wealth tax

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

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6. What is the period of a fiscal year?
(A) 1 April to 31 March
(B) 1 January to 31 December
(C) 1 March to 28 February
(D) None of these

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7. Tax revenue of the Government includes :
(a) Income Tax
(b) Corporate Tax
(c) Excise Duty
(d) All of these

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8. When government spends more than it collects by way of revenue, it incurs ______.
(A) Budget surplus
(B) Budget deficit
(C) Capital expenditure
(D) Revenue expenditure

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

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10. The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______.
(A) Interest
(B) Taxes
(C) Spending
(D) Borrowings

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

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12. Which of the following is the component of a budget ?
(A) Fiscal budget
(B) Capital budget
(C) Both of these
(D) None of these

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13. Capital budget consist of:
(a) Revenue Receipts and Revenue Expenditure
(b) Capital Receipts and Capital Expenditure
(c) Direct and Indirect Tax
(d) None of these

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14. What is the annual statement of the government’s fiscal revenue and fiscal expenditure known?
(A) Budget
(B) Fiscal Budget
(C) Capital Budget
(D) All of these

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15. Which of the following is an indirect tax?
(a) Excise Duty
(b) Sales Tax
(c) Custom Duty
(d) All of these

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