Start learning →

Rajasthan Board Class 12 (RBSE) Government Budget and the Economy — practice questions

Explore 13 free Government Budget and the Economy questions in Rajasthan Board Class 12 (RBSE) Economics. Open each question or exercise to read its content, reference answers and available explanation.

Practise Government Budget and the Economy with Quill →

Government Budget and the Economy questions and exercises with answers

Showing questions 1–13 of 13.

A government budget is an annual statement of the estimated ___ of the government over a financial year:Read the answer and worked solution →Receipts that neither create a liability nor reduce the assets of the government are called:Read the answer and worked solution →Receipts that either create a liability or reduce assets, such as borrowings, are called:Read the answer and worked solution →A tax whose burden (incidence and impact) falls on the same person and cannot be shifted, like income tax, is a:Read the answer and worked solution →A tax whose burden can be shifted to another person, like the Goods and Services Tax, is an:Read the answer and worked solution →The excess of total expenditure over total receipts excluding borrowings is the:Read the answer and worked solution →The excess of revenue expenditure over revenue receipts is the:Read the answer and worked solution →Fiscal deficit minus interest payments gives the:Read the answer and worked solution →A budget in which estimated receipts are equal to estimated expenditure is called a:Read the answer and worked solution →Expenditure that neither creates assets nor reduces liabilities of the government is:Read the answer and worked solution →The allocation function of the government budget refers to the:Read the answer and worked solution →Borrowing by the government is treated as a capital receipt because it:Read the answer and worked solution →The redistribution function of the budget mainly aims at:Read the answer and worked solution →

Worked practice questions

A government budget is an annual statement of the estimated ___ of the government over a financial year:

  1. exports and imports
  2. receipts and expenditure
  3. assets and liabilities
  4. profits and losses
Show answer and solution

Correct answer: B. receipts and expenditure

The budget estimates the government's receipts and expenditure for a financial year.

Open this question →

Receipts that neither create a liability nor reduce the assets of the government are called:

  1. disinvestment receipts
  2. revenue receipts
  3. capital receipts
  4. borrowings
Show answer and solution

Correct answer: B. revenue receipts

Revenue receipts neither create liabilities nor reduce assets (e.g. taxes).

Open this question →

Receipts that either create a liability or reduce assets, such as borrowings, are called:

  1. capital receipts
  2. revenue receipts
  3. grants
  4. tax receipts
Show answer and solution

Correct answer: A. capital receipts

Capital receipts create a liability (borrowing) or reduce assets (disinvestment).

Open this question →

How to practise

  1. Choose a Government Budget and the Economy question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Economics topics

Introduction to EconomicsMoney and BankingNational Income Accounting