Matching Type MCQs of Government Budget and the Economy Class 12

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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 – IColumn – II
A – Revenue Receiptsi) Receipts which either create liability or cause a reduction in the assets of the government.
B – Goods and Services Taxii) Direct Tax
C – Fiscal Deficitiii) Revenue Deficit + (Capital Expenditure – Capital Receipts excluding Borrowings)
D – Non Tax – Revenueiv) 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 – IColumn – II
A – Government increases taxes on very rich peoplei) Reallocation of resources
B – Government increases its own expenditure during deflation to increase aggregate demandii) 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 – AColumn – B
i) Indirect TaxA) 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 – IColumn – II
A – Revenue Receiptsi) neither create any asset nor reduces any liability
B – Capital Receiptsii) 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 – AColumn – B
i) Fiscal DeficitA – 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 – IColumn – II
i) Tax on the incomes of firmsA – Paper tax
ii) Duties levied on goods produced within the countryB – Corporation tax
iii) Tax imposed on goodsC – Excise taxes imported into and exported out of India.
iv) Wealth tax and gift taxD – 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 – AColumn – B
i) Revenue ReceiptA – Recovery of loans
ii) Capital ReceiptB – 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 – AColumn – B
i) Revenue DeficitA – Dividend
ii) Indirect TaxB – Burden can not be shifted
iii) Reallocation of ResourcesC – Revenue Expenditure – Revenue Receipts
iv) Direct TaxesD – Tax concessions or subsidies
v) Non-Tax RevenueE – 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 – AColumn – B
i) Direct TaxA – Proportional in nature
ii) Capital ReceiptB – Primary Deficit + Interest payments
iii) Fiscal DeficitC – Corporation Tax
iv) Indirect TaxesD – 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 – IColumn – II
i) Purchase of metro coaches from JapanA – Revenue expenditure
ii) Dividend received by government from a companyB – Capital receipts
iii) Sale of 40% shares of a PSU to a private companyC – Capital expenditure
iv) Pension paid to retired government employeesD – 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 – AColumn – B
i) Capital Gains TaxA – it is a type of tax, whose burden can be shifted
ii) GSTB – 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 – AColumn – B
i) Reallocation of ResourcesA – Government increases taxes on super-rich people
ii) Economic GrowthB – government provide tax concessions and subsidies to the producers
iii) Economic StabilityC – Government aims to stimulate savings and investments in an economy
iv) Reducing Inequalities in income and wealthD – 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 – IColumn – II
i) Fiscal DeficitA – Total expenditure – Total Receipts
ii) Primary DeficitB – Revenue expenditure – Revenue receipts
iii) Revenue DeficitC – 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 – AColumn – B
i) Fiscal DeficitA – Total Expenditure – Total Receipts
ii) Primary DeficitB – Revenue Expenditure – Revenue Receipts
iii) Revenue DeficitC – 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 – IColumn – II
i) Revenue BudgetA – Budget in which Revenue Receipts = Revenue Expenditure
ii) Capital BudgetB – Budget in which Capital Receipts is more than Capital Expenditure
iii) Deficit BudgetC – Budget in which expenditure exceeds the receipts of the government
iv) Balanced BudgetD – 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 – IColumn – II
i) When government expenditure equals the revenue it collectsA – Deficit Budget
ii) Tax collection exceeds the required expenditureB – Surplus Budget
iii) When government expenditure exceeds the revenueC – 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 – AColumn – B
A – Progressive Taxi) Tax rate rises as the income increases
B – Regressive Taxii) Causes more burden on rich
C – Proportional Taxiii) Rate of tax constantly change
D – Indirect Taxiv) 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 – AColumn – B
A – Disinvestmenti) Capital expenditure
B – Recovery of loansii) Capital receipts
C – Fees and finesiii) Revenue expenditure
D – Subsidiesiv) 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 – AColumn – B
A – Revenue Deficiti) TE > TR
B – Fiscal Deficitii) Borrowings
C – Primary Deficitiii) RR < RE
D – Budget Deficitiv) 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 – AColumn – B
A – Sale of a PSU Banki) Capital Expenditure
B – Interest receivedii) Capital Receipts
C – Construction of a schooliii) Revenue expenditure
D – Subsidiesiv) 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 – IColumn – II
A – Corporate Taxi) Indirect tax
B – Excise Dutyii) Direct tax
C – Escheatsiii) Non tax revenue
D – GSTiv) 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 – AColumn – B
1 – Fiscal Deficita) Other than interest payments
2 – Primary Deficitb) Borrowings less interest payments
3 – Revenue Deficitc) Borrowings
4 – Tax Deficitd) 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 – AColumn – B
1 – Excise Dutya) Capital Receipts
2. Income Taxb) Direct Tax
3. Earning from PSUc) Indirect Tax
4. Old Age Pensionsd) 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 – AColumn – B
1 – Revenue Expenditurea) Does not cause any reduction in government liability.
2. Capital Expenditureb) Which creates corresponding liability for the government
3. Revenue Receiptsc) Which causes a reduction in assets of the government
4. Capital Receiptsd) 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 – AColumn – B
1 – GSTa) Indirect tax
2 – Income taxb) Burden can be shifted
3 – Finec) Direct tax
4 – Tax Receiptsd) 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 – AColumn – B
1 – Balanced Budgeta) Tota anticipated expenditure < Total Anticipated Revenue
2 – Surplus Budgetb) Total Expenditure > Total Revenue
3 – Capital Budgetc) Capital Receipts & Capital Expenditure
4 – Deficit Budgetd) Total Expenditure = Total Revenue

Options

a) 1 – a)
b) 2 – b)
c) 3 – c)
d) 4 – d)

Ans – c)

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Articles: 2015

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