Assertion Reason MCQs of Government Budget and Economy class 12
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We have compiled very important Assertion Reason Based MCQs of Government Budget chapter of economics class 12
Assertion Reason Based Multiple Choice Questions with answers of Government Budget Class 12
Let’s Practice
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The government has allocated extra money in Budget 2021 to provide safe drinking water facilities and sanitation to the people.
Reason (R): The government does it because sanitation and providing drinking water are public goods.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Explanation:- Public goods are not profitable for private sector. Thus it is the responsibilitites of the government to produce.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The government budget is an important monetary policy instrument.
Reason (R): Government budget is a financial statement of budgetary receipts and budgetary expenditure of the government during a fiscal year.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
Explanation:- Govt. Budget is the fiscal policy instrument not the monetary.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The impact and incidence of indirect tax lie on different persons
Reason (R): Indirect Taxes can be avoided by not entering into those transactions, which call for such taxes.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – b)
Explanation:- Both Assertion and Reason are true but Reason does not explain, how impact and incidence of indirect tax lie on different person.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Expenditure on Ujjwala Yojana launched by the Government is an example of revenue expenditure.
Reason (R): It is the expenditure that neither created assets nor reduced liabilities of the Government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The government budget is the statement showing actual receipts and expenditures of the government in the coming financial year.
Reason (R): The government budget is presented by the Finance Minister of India.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
Explanation:- Govt Budget show the expected receipts and payments of the govt of coming year.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Government budget is an annual statement showing actual receipts and actual payments of the government for the last fiscal year.
Reason (R): The government budget is an important fiscal policy instrument of the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans -d)
Explanation:- The government budget shown expected receipts and payments of govt. It is the fiscal policy instrument of the government.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Government should reduce subsidies to curb the revenue deficit.
Reason (R): Providing subsidies on an LPG cylinder is a part of revenue expenditure.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Fiscal deficit indicates the total borrowing requirements of the government from all sources.
Reason (R): Fiscal deficit is financed through borrowings. From the financing side: Fiscal deficit = Net borrowing at home + Borrowing from RBI + Borrowing from abroad.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Dividend received on investment is the revenue receipt of government.
Reason (R): Revenue receipts neither reduce/increase liabilities nor create/reduce assets.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Revenue deficit is a part of fiscal deficit.
Reason (R): Fiscal deficit = Revenue deficit – capital expenditure + Non debt creating capital receipts.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – c)
Explanation:- Fiscal Deficit = Revenue Deficit + Capital Expenditure – Non Debt creating Capital Receipts
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Direct taxes have limited reach.
Reason(R): Direct taxes do not reach all the sections of the economy.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Revenue deficit increases when government fails to recover loans forwarded to different nations.
Reason (R): Recovery of loans is a non-debt-creating capital receipt. It does not affect the revenue receipts.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The government budget is an annual estimated statement of revenue and expenditure during the coming fiscal year.
Reason (R): Through the government budget, it tries to reduce the regional variations.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – b)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Defence services expenditure is a revenue expenditure.
Reason (R): Defence services expenditure is a revenue expenditure because it neither creates any asset nor reduces any liability of the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Repayment of loans by the government is the capital expenditure of the government.
Reason (R): Capital expenditure of government leads to the creation of assets or reduction in liabilities.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Taxation is an effective tool to reduce the inequalities of income.
Reason (R): Generally, the government collects higher taxes from the rich people and spends it on the welfare of the poor. Thereby, reducing the inequalities of income.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Tax is the main source of government revenue that is used to provide subsidies to the poor at concessional prices, therefore those who pay tax should not use government services.
Reason (R): Public goods are non-exclusive and non-rival in consumption.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – b)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Increase in revenue deficit will always lead to a higher fiscal deficit.
Reason (R): Fiscal deficit = Revenue deficit + Capital expenditure – Non debt creating capital receipts.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Highway and road work announced in Kerala, Tamil Nadu, West Bengal, and Assam in budget 2021.
Reason (R): Such an announcement will increase the revenue expenditure of the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – c)
Explanation:- Expenditure on Roads and Highways are the Capital Expenditure
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Provision of public goods is the same as public production.
Reason (R): Provision of public goods means that public goods like law and order, defense, parks, roads, etc. are financed through the budget. These goods may be produced directly by the government or it can encourage the private sector by giving them tax concessions and subsidies.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
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Ans – d)
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Public goods are non-rivalrous.
Reason (R): The benefits of such goods can be enjoyed by all and are not restricted to any one person
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Through changes in its expenditure and taxes, the government brings economic stability.
Reason (R): In case of deflation (or unemployment), the government can give tax concession or increase expenditure to leave more disposable income in the hands of people. In case of inflation, the government can reduce its own expenditure or increase tax.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The best way to finance budgetary deficit is by borrowings from the general public.
Reason (R): Borrowings from the general public do not affect the money supply in the economy.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The construction of flyovers is a revenue expenditure of the government.
Reason (R): Capital expenditure leads to the creation of physical assets of the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
Explanation:- construction of flyover is capital expenditure as it leads to creation of assets.
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Government imposes heavy taxes on alcohol and gives subsidies of LPG gas.
Reason (R): The government undertakes such a measure to ensure economic stability in the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – c)
Govt lavies higher taxes to discourage consumption of alcohol. and give subsidies to reduce income inequalities.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Personal income tax and corporation tax are indirect taxes.
Reason (R): The liability to pay and burden of an indirect tax lie on different persons/entities.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
Explanation:- Income tax and corporation tax are direct tax.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Profits of public sector undertakings is revenue receipt.
Reason (R): Revenue Receipts are regular and recurring in nature.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): PSU disinvestment is an example of non-debt creating capital receipts.
Reason (R): PSU disinvestment reduces the financial assets of the government. However, it does not give rise to the debt.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The revenue budget of the Government represents non-debt creating incomes.
Reason (R): The government budget is majorly comprised of receipts and expenditures on the various accounts.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – b)
Explanation:- Reason does not explain by revenue budget does not represents non debt creating incomes.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Primary deficit = Fiscal deficit – Net interest liabilities
Reason (R): Net interest liabilities consist of interest payments minus interest receipts by the government on net domestic lending.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – b)
Explanation:- Reason does not explain fiscal deficit. It does explain net interest only.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Revenue deficit is bad for the growth of an economy.
Reason (R): Revenue deficit means revenue receipts are used for unproductive activities.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Fiscal deficits are always inflationary.
Reason (R): Fiscal deficit equals borrowings of the government. Such borrowings are generally financed by issuing new currency which may lead to inflation.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
Fiscal Deficits may or may not always inflationary. When borrowings are used in produdtive means, for the time being it lead to deficit. but in long run it helps in creating income.
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): A custom duty on cotton raised from 0 percent to 10 percent in the Budget 2021.
Reason (R): Custom Duty is not subsumed in GST.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Receipts of Post office Savings Accounts, National Savings Certificates, etc. are capital receipts.
Reason (R): Small savings of people (Post office Savings Accounts, National Savings Certificates, etc) are capital receipts for the government because these receipts create a liability of repayment on government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Higher Taxes leads to an increase in the revenue of the government.
Reason (R): Corporate Tax is levied on the earnings of the people.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – c)
corporate tax is levied on the earnings of the company
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The government budget can be used as an effective tool in the process of employment generation.
Reason (R): Investment in infrastructural projects like construction of flyover, bridges, expansion of roads, etc. Creates jobs for different sections of the workforce. In rural/urban areas government can provide jobs through various employment generation schemes like MGNREGA, SJSRY, PMRY, etc.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
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Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Repayment of borrowings is a capital expenditure.
Reason (R): Capital Expenditure reduces the liability of the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The Government Budget of a country can not have a fiscal deficit without the existence of a revenue deficit.
Reason (R): Fiscal deficit can exist without revenue deficit, if capital Budget is in deficit with balanced Revenue Budget or if Capital Budget is in deficit in greater proportion to Surplus Revenue Budget.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Fines and penalties are a source of non-tax revenue for the government.
Reason (R): A fine of ₹ 500 was imposed on not wearing a mask.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Government has started spending more on providing free services like education and health to the poor. It will help in the reduction in income inequalities.
Reason (R): Spending on free services to the poor raises their standard of living and at the same time helps in reduction in income inequalities. It also helps in raising the production potential of the country by raising the efficiency level of the working class among the poor.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read Here:- Normal MCQs of Rural Development chapter of Economics Class 12
Read Here:- Matching Type MCQs of Rural Development Chapter of Economics Class 12
Read Here:- Assertion Reason Based MCQs of Rural Development Chapter of Economics Class 12
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Strategic sale of BPCL, IDBI Bank, Air India to be completed in the next fiscal year.
Reason (R): Strategic sales gives revenue to the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Public goods must be provided by the government.
Reason (R): Public goods are those goods or services that are collectively consumed. It is not possible to exclude anyone from enjoying their benefits and one person’s consumption does not reduce the availability to others.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Income tax is a great source of revenue for the government.
Reason (R): It is a direct tax as its burden can not be shifted.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): “Borrowings is an example of a capital receipt.
Reason (R): It neither leads to an increase in liability of repayment on government nor reduction of assets.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – c)
Read Here:- Important MCQs of Nature and Significance of Management BST class 12
Read Here:- Assertion Reason MCQs of Nature and Significance of Management BST class 12
Read Here:- Matching Type MCQs of Nature and Significance of Management BST class 12
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Fiscal deficit indicates the total borrowing requirements of the government.
Reason (R): Government mainly borrows from RBI to meet its fiscal deficit.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – c)
Explanation:- Govt can also borrow from public in the form of bonds, from international organisations and commercial banks too.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Taxes received by the government are not revenue receipts.
Reason (R): Because taxes neither create any liability nor reduce any asset of the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – d)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): A deficit budget is good for developing countries like India.
Reason (R): It is good when expenditures are incurred on productive means that would generate future income.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read Here:- Important MCQs of Principles of Management BST class 12
Read Here:- Assertion Reason MCQs of Principles of Management BST class 12
Read Here:- Matching Type MCQs of Principles of Management BST class 12
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Fiscal deficit shows a better position of the government expenditure in comparison to the budget deficit.
Reason (R): Fiscal deficit means borrowings of the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Primary Deficit is the Root Cause of Fiscal Deficit.
Reason (R): High Primary Deficit indicates that interest commitments (on earlier loans) have forced the government to borrow.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – c)
Primary deficit only represents current year borrowing requirement of the government. It doesn not include interest on past loans.
Read Here:- Important MCQs of Business Environment BST class 12
Read Here:- Assertion Reason MCQs of Business Environment BST Class 12
Read Here:- Matching Type MCQs of Business Environment BST class 12
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Salaries paid to the central government employees are a part of revenue expenditure
Reason (R): It generates revenue for the government.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Ans – c)
Read Here:- Important MCQs of Planning chapter BST class 12
Read Here:- Assertion Reason MCQs of Planning chapter BST class 12
Read Here:- Matching Type MCQs of Planning chapter BST class 12
Read Here:- Important MCQs of Organising chapter BST class 12
Read Here:- Assertion Reason MCQs of Organising chapter BST class 12
Read Here:- Matching Type MCQs of Organising chapter BST class 12
Read Here:- Important MCQs of Marketing Management BST class 12
Read Here:- Assertion Reason MCQs of Marketing Management BST class 12
Read Here:- Matching Type MCQs of Marketing Management BST class 12
Read Here:- Important MCQ of Fundamentals of Partnership of Accountancy class 12
Read Here:- Assertion Reason MCQs of Fundamentals of Partnership of Accountancy class 12
Read Here:- Matching Type MCQs of Fundamentals of Partnership of Accountancy class 12
Read Here:- Important MCQs of Goodwill Accountancy class 12
Read Here:- Assertion Reason MCQs of Goodwill Accountancy class 12
Read Here:- Matching Type MCQs of Goodwill Accountancy class 12
Read Here:- Important MCQs of Change in Profit Sharing Ratio Accountancy class 12
Read Here:- Assertion Reason MCQs of Change in Profit Sharing Ratio Accountancy class 12
Read Here:- Matching Type MCQ of Change in Profit Sharing Ratio Accountancy class 12
Read Here:- Important MCQs of Admission of Partner Accountancy class 12
Read Here:- Assertion Reason MCQs of Admission of Partner Accountancy class 12
Read Here:- Matching Type MCQ of Admission of Partner Accountancy class 12
Read Here:- Important MCQs of Financial Statement of Company Accountancy class 12
Read Here:- Assertion Reason MCQs of Financial Statement of Company Accountancy class 12
Read Here:- Matching Type MCQs of Financial Statement of Company Accountancy class 12
Read Here:- Important MCQs of Financial Statement Analysis Accountancy class 12
Read Here:- Assertion Reason MCQs of Financial Statement Analysis Accountancy class 12
Read Here:- Matching Type MCQs of Financial Statement Analysis Accountancy class 12
Read Here:- Important MCQs of Accounting Ratios Accountancy class 12
Read Here:- Assertion Reason MCQs of Accounting Ratios Accountancy class 12
Read Here:- Matching Type MCQs of Accounting Ratios Accountancy class 12
| Topic | Chapters (Unit) |
| Syllabus | Syllabus of Government Budget and the Economy chapter Economics class 12 |
MCQs of Government Budget for class 12, CUET, CBSE, ISC and state Board
| 1. | MCQS of Government Budget class 12, CUET, CBSE, ISC |
| 2. | Assertion Reason MCQs of Government Budget class 12, CUET, CBSE, ISC |
| 3. | Matching Type MCQs of Government Budget class 12, CUET, CBSE, ISC |
| 4. | Case/situation Based MCQs of Government Budget class 12, CUET, CBSE, ISC |
