Page 1 : CHAPTER -5, , GOVERNMENT BUDGET AND THE ECON, , I, Choose the correct answer (each question carries 1 mark), 1. The Taxes on Individual and firms are, , , , (a) Direct Taxes (b) Indirect Taxes, , (c) Fixed Taxes (d) Non Tax Revenues, 2. Duties Levied on goods produced with in the country, , (a) Service Tax (b) Estate Duties, , (c) Excise Duties (Taxes) (d) Customs duties, 3. The Tax which acts as an automatic stabiliser, , (a) Qualitative income Tax (b) Income Tax, , (c) Quantitative Tax (d) Proportional income Tax, 4. Which of the following is an example for ‘Paper taxes’., , (a) Income Tax (b) Excise Taxes, , (c) Wealth Tax (d) Customs Taxes, , 5. When Demand exceeds the available output under conditions of high level of, employment, this may give rise to, , (a) Inflation (b) Deflation, (c) Stabilisation (d) None of the above, Tl. Fill in the blanks (each question carries 1 mark), . Non paying users of public goods are known as, . Financial year runs from to in India., . Taxes imposed on goods imported into and exported out of India are called, , wn, , . The Government may spend an amount equal to the revenue it collects., , aS, , This is know as, 5. Revenue dificit = Revenue expenditure —, , III. Answer the following questions in a sentence/word. (each question carries 1, mark), , . What are public goods?, . Who are ‘free-riders’?, . What do you meant by public provision?, , RwWNe, , . Give the meaning of progressive Tax., , 27

Page 2 : COMIN AH, , Iv., , SZ auwspwne, , wh wn =, , Vi., , wk wn —, , VIL., , . What are Revenue receipts?, , . Write the meaning of capital receipts., , . Give the meaning of Revenue expenditure., . Give the meaning of capital expenditure., , . Expand FRBMA., , . What is primary deficit?, , Answer the following questions in 4 sentences. (each question carries 2 marks), , . Write the difference between Public provision and Public production., . Who are ‘Free riders’? Why are they called so?, , . Distinguish between surplus budget and deficit budget., , . Why public goods must be provided by the Government?, , . Mention the non-tax revenues of the Central Government., , . Why the proportional income tax acts as automatic stabiliser?, , Answer the following questions in 12 sentences. (each question carries 4 marks), , . Write the chart of the Government budget., , . Distinguish between Revenue expenditure and capital expenditure., . Briefly explain the revenue deficit and fiscal deficit., , . Does public debt impose a burden? Explain., , . Write a short note on the Ricardian equivalence., , Answer the following questions in 20 sentences. (each question carries 6 marks), , . Explain the classification of receipts., . Explain the classification of expenditure., , . ‘The fiscal deficit gives borrowing requirements of the government’. Elucidate., . Discuss the issue of deficit reduction., , . Explain the changes in taxes with the help a diagram., , Assignment and project oriented questions. (carries 5 marks), , . Prepare a budget on monthly income and expenditure of your family., , ARE, , 28