Matching Type MCQs of Government Budget and the Economy Class 12
Looking for the important Matching Type MCQ with answers of Government Budget and the economy chapter of Macroeconomics class 12 CBSE, ISC and other State Boards.
We have compiled very important Matching type MCQs of Government Budget and the Economy chapter of economics class 12
Matching Type Multiple Choice Questions of Government Budget and the Economy class 12
Let’s Practice.
From the set of statements given in Column I and Column II, choose the correct pair of statements:
| Column – I | Column – II |
| A – Revenue Receipts | i) Receipts which either create liability or cause a reduction in the assets of the government. |
| B – Goods and Services Tax | ii) Direct Tax |
| C – Fiscal Deficit | iii) Revenue Deficit + (Capital Expenditure – Capital Receipts excluding Borrowings) |
| D – Non Tax – Revenue | iv) Borrowings |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)
Ans – c)
Match the following and choose the correct alternative:
| Column – I | Column – II |
| A – Government increases taxes on very rich people | i) Reallocation of resources |
| B – Government increases its own expenditure during deflation to increase aggregate demand | ii) Economic Stability |
| iii) Reducing in equalities in income and wealth |
Options
a) A – iii, B – ii
b) A – iii, B – i
c) A – i, B – ii
d) A – ii, B – i
Ans – a)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Indirect Tax | A) Its impact and incidence lie on the same person |
| B) Its impact and incidence lie on different persons |
Options
a) i) – A)
b) i) – B)
Ans – b)
Match the following:
| Column – I | Column – II |
| A – Revenue Receipts | i) neither create any asset nor reduces any liability |
| B – Capital Receipts | ii) either creates liability or reduces an asset |
| iii) either create assets or reduce liability | |
| iv) neither creates a liability nor reduces any asset |
a) A – i, B – ii
b) A – ii, B – i
c) A – iv, B – ii
d) A – iii, B – i
Ans – c)
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Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Fiscal Deficit | A – Primary Deficit + Interest Payments |
| B – Primary Deficit – Interest Payments |
Options
a) i) – A
b) i) – B
Ans – a)
Match the columns and choose the correct alternative:
| Column – I | Column – II |
| i) Tax on the incomes of firms | A – Paper tax |
| ii) Duties levied on goods produced within the country | B – Corporation tax |
| iii) Tax imposed on goods | C – Excise taxes imported into and exported out of India. |
| iv) Wealth tax and gift tax | D – Custom duty |
a) i – A, ii – D, iii – C, iv – B
b) i – B, ii – C, iii – D, iv – A
c) i – B, ii – D, iii – C, iv – A
d) i – A, ii – B, iii – C, iv – D
Ans – c)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Revenue Receipt | A – Recovery of loans |
| ii) Capital Receipt | B – Foreign aid against earthquake victims |
Options
a) i) – A, ii) – B
b) i) – B, ii) – A
Ans – b)
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Match the statements given under A with the correct options given under B
| Column – A | Column – B |
| i) Revenue Deficit | A – Dividend |
| ii) Indirect Tax | B – Burden can not be shifted |
| iii) Reallocation of Resources | C – Revenue Expenditure – Revenue Receipts |
| iv) Direct Taxes | D – Tax concessions or subsidies |
| v) Non-Tax Revenue | E – Goods and Service Tax |
Options
a) i) – C, ii) – E, iii) – D, iv) – B, v) – a
b) i) – A, ii) – B, iii) – C, iv) – D, v) – E
c) i) – B, ii) – A, iii) – C, iv) – D, v) – E
d) i) – D, ii) _ C, iii) – A, iv) – C, v) – B
Ans – a)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Direct Tax | A – Proportional in nature |
| ii) Capital Receipt | B – Primary Deficit + Interest payments |
| iii) Fiscal Deficit | C – Corporation Tax |
| iv) Indirect Taxes | D – Recovery of Loans |
Options
a) i) – D, ii) – B, iii) – A, iv) – C
b) i) – C, ii) – D, iii) – b, iv) – a
c) i) – A, ii) – B, iii) – C, iv) – D
d) i) – B, ii) – C, iii) – A, iv) – D
Ans – b)
Match the following:
| Column – I | Column – II |
| i) Purchase of metro coaches from Japan | A – Revenue expenditure |
| ii) Dividend received by government from a company | B – Capital receipts |
| iii) Sale of 40% shares of a PSU to a private company | C – Capital expenditure |
| iv) Pension paid to retired government employees | D – Revenue receipts |
a) i – C, ii – D, iii – B, iv – A
b) i – B, ii – C, iii – D, iv – A
c) i – B, ii – D, iii – C, iv – A
d) i – A, ii – B, iii – C, iv – D
Ans – a)
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Identify the following types of taxes from the given options:
| Column – A | Column – B |
| i) Capital Gains Tax | A – it is a type of tax, whose burden can be shifted |
| ii) GST | B – It is a type of tax, whose burden can not be shifted |
Options
a) i) – A, ii) – B
b) i) – B, ii) – A
Ans – b)
Match the following statements given in column B with objectives of the government budget given in Column A:
| Column – A | Column – B |
| i) Reallocation of Resources | A – Government increases taxes on super-rich people |
| ii) Economic Growth | B – government provide tax concessions and subsidies to the producers |
| iii) Economic Stability | C – Government aims to stimulate savings and investments in an economy |
| iv) Reducing Inequalities in income and wealth | D – During deflation, the government increases its expenditure |
Options
a) i) – B, ii) – C, iii) – D, iv) – A
b) i) – A, ii) – B, iii) – C, iv) – D
c) i) – C, ii) – A, iii) – B, iv) – D
d) i) – D, ii) – B, iii) – A, iv) – C
Ans – a)
Match the following:
| Column – I | Column – II |
| i) Fiscal Deficit | A – Total expenditure – Total Receipts |
| ii) Primary Deficit | B – Revenue expenditure – Revenue receipts |
| iii) Revenue Deficit | C – Total expenditure – Total receipts excluding borrowings |
| D – Fiscal deficit – Interest Payment |
Options
a) i – C, ii – D, iii – B
b) i – B, ii – C, iii – D
c) i – B, ii – D, iii – C
d) i – A, ii – B, iii – C
Ans – a)
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Identify the different types of Deficit:
| Column – A | Column – B |
| i) Fiscal Deficit | A – Total Expenditure – Total Receipts |
| ii) Primary Deficit | B – Revenue Expenditure – Revenue Receipts |
| iii) Revenue Deficit | C – Total Expenditure – Total Receipts Excluding Borrowings |
| D – Fiscal Deficit – Interest Payment |
Options
a) i) – C, ii) – D, iii) – b
b) i) – A, ii) – B, iii) – C
c) i) – B, ii) – A, iii) – D
d) i) – B, ii) – A, iii) – C
Ans – a)
From the set of statements given in Column I and Column II, choose the correct pair of statements:
| Column – I | Column – II |
| i) Revenue Budget | A – Budget in which Revenue Receipts = Revenue Expenditure |
| ii) Capital Budget | B – Budget in which Capital Receipts is more than Capital Expenditure |
| iii) Deficit Budget | C – Budget in which expenditure exceeds the receipts of the government |
| iv) Balanced Budget | D – Budget in which capital receipts = Capital Expenditure |
Options
a) i – A
b) ii – B
c) iii – C
d) iv – D
Ans – c)
Match the columns:
| Column – I | Column – II |
| i) When government expenditure equals the revenue it collects | A – Deficit Budget |
| ii) Tax collection exceeds the required expenditure | B – Surplus Budget |
| iii) When government expenditure exceeds the revenue | C – Balanced Budget |
Options
a) i – C, ii – D, iii – B
b) i – B, ii – C, iii – D
c) i – B, ii – D, iii – C
d) i – C, ii – B, iii – A
Ans – d)
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Identify the correct pair from Column I and Column II and choose the correct alternative.
| Column – A | Column – B |
| A – Progressive Tax | i) Tax rate rises as the income increases |
| B – Regressive Tax | ii) Causes more burden on rich |
| C – Proportional Tax | iii) Rate of tax constantly change |
| D – Indirect Tax | iv) Burden of tax can not be shifted |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)
Ans – a)
Identify the correct pair from Column I and Column II and choose the correct alternative:
| Column – A | Column – B |
| A – Disinvestment | i) Capital expenditure |
| B – Recovery of loans | ii) Capital receipts |
| C – Fees and fines | iii) Revenue expenditure |
| D – Subsidies | iv) Revenue receipts |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)
Ans – b)
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Identify the correct pair from Column I and Column II and choose the correct alternative:
| Column – A | Column – B |
| A – Revenue Deficit | i) TE > TR |
| B – Fiscal Deficit | ii) Borrowings |
| C – Primary Deficit | iii) RR < RE |
| D – Budget Deficit | iv) TE > TR excluding borrowings |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)
Ans – b)
Match the following column I and column II and choose the correct alternative:
| Column – A | Column – B |
| A – Sale of a PSU Bank | i) Capital Expenditure |
| B – Interest received | ii) Capital Receipts |
| C – Construction of a school | iii) Revenue expenditure |
| D – Subsidies | iv) Revenue receipts |
Options
a) A – i), B – iii), C – iv), D – ii)
b) A – ii), B – iv), C – i), D – iii)
c) A – iv), B – iii), C – i), D – ii)
d) A – i), B – ii), C – iv), D – iii)
Ans – b)
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Identify the correct pair from Column I and Column II and choose the correct alternative:
| Column – I | Column – II |
| A – Corporate Tax | i) Indirect tax |
| B – Excise Duty | ii) Direct tax |
| C – Escheats | iii) Non tax revenue |
| D – GST | iv) Tax revenue |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)
Ans – c)
Identify the correctly matched pair of the items in Column A to those in Column B.
| Column – A | Column – B |
| 1 – Fiscal Deficit | a) Other than interest payments |
| 2 – Primary Deficit | b) Borrowings less interest payments |
| 3 – Revenue Deficit | c) Borrowings |
| 4 – Tax Deficit | d) Borrowings in government budget |
Options
a) 1 – a)
b) 2 – b)
c) 3 – c)
d) 4 – d)
Ans – b)
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Identify the correctly matched pair in Column A to that of Column B.
| Column – A | Column – B |
| 1 – Excise Duty | a) Capital Receipts |
| 2. Income Tax | b) Direct Tax |
| 3. Earning from PSU | c) Indirect Tax |
| 4. Old Age Pensions | d) Non Tax Revenue Receipts |
Options
a) 1 – a)
b) 2 – b)
c) 3 – c)
d) 4 – d)
Ans – b)
Identify the correctly matched pair of the items in column A to those in Column B:
| Column – A | Column – B |
| 1 – Revenue Expenditure | a) Does not cause any reduction in government liability. |
| 2. Capital Expenditure | b) Which creates corresponding liability for the government |
| 3. Revenue Receipts | c) Which causes a reduction in assets of the government |
| 4. Capital Receipts | d) Causes reduction in government liability. |
Options
a) 1 – a)
b) 2 – b)
c) 3 – c)
d) 4 – d)
Ans – a)
z
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Match the items in Column A to those in Column B and choose the correct option:
| Column – A | Column – B |
| 1 – GST | a) Indirect tax |
| 2 – Income tax | b) Burden can be shifted |
| 3 – Fine | c) Direct tax |
| 4 – Tax Receipts | d) Capital Receipts |
Options
a) 1 – a)
b) 2 – b)
c) 3 – c)
d) 4 – d)
Ans – a)
Match the items in Column A to those in Column B and choose the correct option:
| Column – A | Column – B |
| 1 – Balanced Budget | a) Tota anticipated expenditure < Total Anticipated Revenue |
| 2 – Surplus Budget | b) Total Expenditure > Total Revenue |
| 3 – Capital Budget | c) Capital Receipts & Capital Expenditure |
| 4 – Deficit Budget | d) Total Expenditure = Total Revenue |
Options
a) 1 – a)
b) 2 – b)
c) 3 – c)
d) 4 – d)
Ans – c)
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| 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 |
