Economics MCQ Class 12 Chapter 5: Check the below NCERT MCQ Questions for Economics MCQ Class 12 Chapter 5 with Answers Pdf free download. Economics MCQ Class 12 Chapter 5 Questions for Economics with Answers were prepared based on the latest exam pattern. We have provided Economics MCQ Class 12 Chapter 5 with Answers to help students understand the concept very well.

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Economics MCQ Class 12 Chapter 5

1. Which objectives government attempts to obtain by Budget ?
(a) To Promote Economic Development
(b) Balanced Regional Development
(c) Redistribution of Income and Wealth
(d) All the above

2. An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as ______.
(A) Budget
(B) Income estimates
(C) Account
(D) Expenditure

3. Which is a component of Budget?
(a) Budget Receipts
(b) Budget Expenditure
(c) Both (a) and (b)
(d) None of the above

4. Which of the following is an example of direct tax?
(A) VAT
(B) Excise duty
(C) Entertainment tax
(D) Wealth tax

5. Which is a component of the Budget Receipt?
(a) Revenue Receipt
(b) Capital Receipt
(c) Both (a) and (b)
(d) None of the above

6. What is the period of a fiscal year?
(A) 1 April to 31 March
(B) 1 January to 31 December
(C) 1 March to 28 February
(D) None of these

7. Tax revenue of the Government includes :
(a) Income Tax
(b) Corporate Tax
(c) Excise Duty
(d) All of these

8. When government spends more than it collects by way of revenue, it incurs ______.
(A) Budget surplus
(B) Budget deficit
(C) Capital expenditure
(D) Revenue expenditure

9. Which is included in the Direct Tax?
(a) Income Tax
(b) Gift Tax
(c) Excise Duty
(d) Both (a) and (b)

10. The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______.
(A) Interest
(B) Taxes
(C) Spending
(D) Borrowings

11. The expenditures which do not create assets for the government is called :
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Both (a) and (b)
(d) None of the above

12. Which of the following is the component of a budget ?
(A) Fiscal budget
(B) Capital budget
(C) Both of these
(D) None of these

13. Capital budget consist of:
(a) Revenue Receipts and Revenue Expenditure
(b) Capital Receipts and Capital Expenditure
(c) Direct and Indirect Tax
(d) None of these

14. What is the annual statement of the government’s fiscal revenue and fiscal expenditure known?
(A) Budget
(B) Fiscal Budget
(C) Capital Budget
(D) All of these

15. Which of the following is an indirect tax?
(a) Excise Duty
(b) Sales Tax
(c) Custom Duty
(d) All of these

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