Government Budget and the Economy-Government Budget (CBSE Class-12 Economics): Questions 1 - 10 of 16

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Question number: 1

» Government Budget and the Economy » Government Budget

Short Answer Question▾

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How can budgetary policy be used for reducing inequalities in income and wealth?

Question number: 2

» Government Budget and the Economy » Government Budget

One Liner Question▾

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Distinguish between direct tax and indirect tax. Give an example of each.

Question number: 3

» Government Budget and the Economy » Government Budget

One Liner Question▾

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Why is entertainment tax an indirect tax?

Question number: 4

» Government Budget and the Economy » Government Budget

Short Answer Question▾

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How can budgetary policy be used for allocation of resources in the economy?

Question number: 5

» Government Budget and the Economy » Government Budget

Short Answer Question▾

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What is a government budget? Give the meaning of:

a) Revenue deficit

b) Fiscal deficit

Question number: 6

» Government Budget and the Economy » Government Budget

Appeared in Year: 2010

Essay Question▾

Describe in Detail

How can Government budget be helpful in altering distribution of income in an economy? Explain.

Explanation

The government complete its budgetary policy goes to distribution of income in the economy. The government goals to promote fair and right distribution of income in an economy.

This is done by taxation and expenditure policy. By its taxation policy the government taxes the higher income groups in the economy.… (45 more words) …

Question number: 7

» Government Budget and the Economy » Government Budget

Appeared in Year: 2011

Essay Question▾

Describe in Detail

Explain the ‘redistribution of income’ objective of Government budget.

Explanation

Redistribution of income is one of the important objectives of government budget. The government through its budgetary policy attempts right distribution of income in an economy. This is done through taxation and expenditure policy. The government taxes the higher income groups in the economy. Purchasing power extracted from the higher… (50 more words) …

Question number: 8

» Government Budget and the Economy » Government Budget

Appeared in Year: 2011

Essay Question▾

Describe in Detail

Explain the ‘allocation of resources’ objective of Government budget.

Explanation

Allocation of resources is one of the important objectives of government budget. The private producers aim profit maximization and the government aims welfare maximization. The private sector tend to divert resource areas of high profit and ignore areas of social welfare. The government through its budgetary policy reallocates resources to… (25 more words) …

Question number: 9

» Government Budget and the Economy » Government Budget

Essay Question▾

Describe in Detail

Distinguish between Balanced budget and surplus budget

Explanation

Distinguish between Balanced budget and surplus budget

In detail explain distinguish between Balanced budget and surplus budget

characteristics

Balanced budget

surplus budget

Definition

Balanced budget imply that current revenue and current expenditure both are equal.

Surplus budget is when tax revenue is greater than government spending.

Formula

Balance budget =… (76 more words) …

Question number: 10

» Government Budget and the Economy » Government Budget

Essay Question▾

Describe in Detail

A consumer consumes only two goods. Why is the consumer in equilibrium when he buys only that combination of the two goods that is shown at the point of tangency of the budget line with an indifference curve? Explain.

Explanation

the consumer in equilibrium

The Consumer in Equilibrium

the consumer in equilibrium in thi figure

Above diagram is process of consumer’s equilibrium. Assume the two goods be X and Y as shown in the diagram. The tangency is at point E Slope of indifference curve = Slope of budget line.

The equilibrium purchase is… (82 more words) …

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