Tag: government budget and economy

Questions Related to government budget and economy

Indifference curves can intersect each other.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. True

  2. False

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Correct Option: B
Explanation:

Indifference curves cannot intersect each other as it would break down the indifference curve analysis. This is because the consumer would have more than one point on the indifference curve giving him a different level of satisfaction.

Along an indifference curve utility is _______.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. same

  2. lesser

  3. greater

  4. none of the above

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Correct Option: A

Convexity means the slope is __________.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. increasing

  2. decreasing

  3. constant

  4. zero

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Correct Option: B

What shows all possible combinations of two goods that can be bought by the consumer?

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. Marginal utility curve

  2. Indifference curve

  3. Budget line

  4. None of the above

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Correct Option: C

At the point of consumer's equilibrium indifference curve and budget curve are __________.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. passing through each other

  2. intersecting

  3. tangent

  4. none of the above

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Correct Option: C

The _______________ of the budget starts once the Finance and Appropriation Bills are passed.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. preparation

  2. enactment

  3. execution

  4. none of the above

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Correct Option: C

The preparation of the budget by the Ministry of Finance, Government of India, starts in the month of _________________.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. January

  2. September

  3. December

  4. March

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Correct Option: B

Budget of the Delhi government is an example of _____________ budget.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. union

  2. state

  3. district

  4. national

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Correct Option: B
Explanation:
State budget is the government budget which is prepared for a given financial year for a single state. The budget prepared by the state government is a state budget. Therefore, the budget of Delhi government is an example of state budget.

The revenue budget consists of capital receipts and capital expenditure.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. True

  2. False

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Correct Option: B
Explanation:

False.

Revenue shows all types of current receipts of the government and related expenditures. Revenue budget includes 'revenue receipts' and 'revenue expenditure'. 
Revenue receipts refers to all such types of money receipts that do not create any liability for the government or does not reduce any asset of the government. 

Revenue expenditure are all such types of government expenditure that does not create any assets for the government or does not cause any reduction in the liability of the government. 

The types of budget of the government are ______________.

business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

  1. Union budget

  2. Plan budget

  3. Revenue budget

  4. Both A and B

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Correct Option: D
Explanation:

The type of budget of the government are: 

Union budget - The government budget which is prepared for a given financial year for the whole country is known as union budget. 
Plan Budget - The government budget which is prepared for a upcoming financial year with estimated receipts and expenditure is known as plan budget.