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Class 12 Government Budget and the Economy worksheet
CBSE Social Science. Public goods, budget functions, revenue and capital receipts and expenditure, revenue, fiscal and primary deficits, spending and tax multipliers. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
A statement of the expected receipts and expenditure of the government for a financial year is the:
- balance sheet of a bank
- national income account
- balance of payments
- government budget
Answer
(d) government budget
- 2.
Which of these is a revenue receipt of the government?
- dividends from public sector firms
- small savings deposits received
- loans from abroad
- sale of shares in public sector firms
Answer
(a) dividends from public sector firms
- 3.
Which of these is capital expenditure of the government?
- running costs of offices
- pensions
- salaries of government employees
- buying land for a hospital
Answer
(d) buying land for a hospital
Section B · short answer
- 4.
What are the two features of public goods?
Answer
Non-rivalrous (one person’s use does not reduce another’s) and non-excludable (no one can be kept from using them).
- 5.
Direct or indirect tax? (a) a sales tax on goods (b) customs duties on imports
Answer
(a) indirect (b) indirect
Section C · long answer
- 6.
Why must public goods usually be provided by the government?
Answer
Being non-rivalrous and non-excludable, people can use them without paying, so private firms cannot collect fees and will not supply them.
Fresh sheets for your child
In the app, every Government Budget and the Economy sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
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