Question 1

The practice by Governments in which a government spends more money than it receives as revenue is referred to as:

Accepted Answer

A) Piggy backing 
B) Direct Funding 
C) Deficit financing 
D) Pump Priming 
A) Piggy backing 
B) Direct Funding 
C) Deficit financing 
D) Pump Priming C

Question 2

With increase in urbanization and industrialization, the role of Government started:

Accepted Answer

A) Declining 
B) Increasing 
C) Stagnant 
D) Unstable 
A) Declining 
B) Increasing 
C) Stagnant 
D) Unstable B

Question 3

Which of the following could be a reason for raising public loans by a country?

Accepted Answer

A) Bringing gap between revenue and expenditure through temporary loans from central bank. 
B) To reduce depression in the economy and financing public works program. 
C) Financing the public sector for expanding and strengthening the public enterprises 
D) All of the above 
A) Bringing gap between revenue and expenditure through temporary loans from central bank. 
B) To reduce depression in the economy and financing public works program. 
C) Financing the public sector for expanding and strengthening the public enterprises 
D) All of the above D

Question 4

Developmental expenditure refers to

Accepted Answer

A) Revenue Expenditure incurred for meeting current expenses of the Government 
B) Capital Expenditure incurred for creating long-term assets of the Government 
C) Expenditure which is incurred on activities directly related to economic development 
D) Expenditure which is incurred on running the normal government administration 
A) Revenue Expenditure incurred for meeting current expenses of the Government 
B) Capital Expenditure incurred for creating long-term assets of the Government 
C) Expenditure which is incurred on activities directly related to economic development 
D) Expenditure which is incurred on running the normal government administration

Question 5

in order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencing...

Accepted Answer

A) unemployment rates. 
B) inflation rates. 
C) interest rates. 
D) economic growth rates. 
A) unemployment rates. 
B) inflation rates. 
C) interest rates. 
D) economic growth rates.

Question 6

Old age pension is "National Old Age Pension Schemes", "Interest payments", "Subsidies", "Unemployment allowances", "Welfare benefits to weaker sections, etc." By incurring such expenditure, the government does not get anything in return, but it adds to the welfare of the people, especially belong to the weaker sections of the society. Such expenditure basically results in redistribution of money incomes within the society.

Accepted Answer

A) Non-Transfer Expenditure 
B) Transfer Expenditure or transfer payments 
C) Capital Expenditure 
D) Non-Distributive Expenditure 
A) Non-Transfer Expenditure 
B) Transfer Expenditure or transfer payments 
C) Capital Expenditure 
D) Non-Distributive Expenditure

Question 7

Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributing to such a trend?

Accepted Answer

A) Increase trend in Financing of Public works programs 
B) Increasing trend in Financing for Economic Development 
C) Undertaking of Welfare Schemes by the Government 
D) All of the above 
A) Increase trend in Financing of Public works programs 
B) Increasing trend in Financing for Economic Development 
C) Undertaking of Welfare Schemes by the Government 
D) All of the above

Question 8

Which of the following describes the situation where revenues and expenditures are equal during a given period?

Accepted Answer

A) Public Debt 
B) Budget Surplus 
C) Balanced Budget 
D) Budget Deficit 
A) Public Debt 
B) Budget Surplus 
C) Balanced Budget 
D) Budget Deficit

Question 9

Expenditure incurred by the Government on building durable assets, like highways, multipurpose dams, irrigation projects are in the nature of

Accepted Answer

A) Capital Expenditure 
B) Revenue Expenditure 
C) Transfer Expenditure 
D) Unproductive Expenditure 
A) Capital Expenditure 
B) Revenue Expenditure 
C) Transfer Expenditure 
D) Unproductive Expenditure

Question 10

The ratio of change in the national income in relation to the change in government spending that causes it is referred to as:

Accepted Answer

A) Fiscal Multiplier 
B) Spending Ratio 
C) Expenditure Ratio 
D) Cost Multiplier 
A) Fiscal Multiplier 
B) Spending Ratio 
C) Expenditure Ratio 
D) Cost Multiplier

Question 11

Expenditures incurred on civil administration, defence forces is in the nature of

Accepted Answer

A) Capital Expenditure 
B) Revenue Expenditure 
C) Transfer Expenditure 
D) Productive Expenditure 
A) Capital Expenditure 
B) Revenue Expenditure 
C) Transfer Expenditure 
D) Productive Expenditure

Question 12

Expenditure on defence, interest payments, law and order maintenance and public administration expenses are generally treated as:

Accepted Answer

A) Productive Expenditure 
B) Unproductive Expenditure 
C) Growth-oriented Expenditure 
D) Progressive Expenditure 
A) Productive Expenditure 
B) Unproductive Expenditure 
C) Growth-oriented Expenditure 
D) Progressive Expenditure

Question 13

The multiplier effect is best described as:

Accepted Answer

A) the increase in final income arising from any new injection of spending 
B) the increase in the expenditure of a country 
C) the increase in the public debt of a country 
D) the increase in investment of a country 
A) the increase in final income arising from any new injection of spending 
B) the increase in the expenditure of a country 
C) the increase in the public debt of a country 
D) the increase in investment of a country

The practice by Governments in which a government spends more money than it receives as revenue is referred to as:

With increase in urbanization and industrialization, the role of Government started:

Which of the following could be a reason for raising public loans by a country?

Developmental expenditure refers to

in order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencing...

Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributing to such a trend?

Which of the following describes the situation where revenues and expenditures are equal during a given period?

Expenditure incurred by the Government on building durable assets, like highways, multipurpose dams, irrigation projects are in the nature of

The ratio of change in the national income in relation to the change in government spending that causes it is referred to as:

Expenditures incurred on civil administration, defence forces is in the nature of

Expenditure on defence, interest payments, law and order maintenance and public administration expenses are generally treated as:

The multiplier effect is best described as:

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

National Income and Final Goods

Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

Money and Inflation

Macroeconomic Concepts and Theories

Economics and Public Finance

Filters

Exam 8: Understanding Public Finance and Business Cycles

The practice by Governments in which a government spends more money than it receives as revenue is referred to as:

With increase in urbanization and industrialization, the role of Government started:

Which of the following could be a reason for raising public loans by a country?

Developmental expenditure refers to

in order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencing...

Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributing to such a trend?

Which of the following describes the situation where revenues and expenditures are equal during a given period?

Expenditure incurred by the Government on building durable assets, like highways, multipurpose dams, irrigation projects are in the nature of

The ratio of change in the national income in relation to the change in government spending that causes it is referred to as:

Expenditures incurred on civil administration, defence forces is in the nature of

Expenditure on defence, interest payments, law and order maintenance and public administration expenses are generally treated as:

The multiplier effect is best described as:

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

National Income and Final Goods

Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

Money and Inflation

Macroeconomic Concepts and Theories

Economics and Public Finance

Filters