Notes Plus Two Economics Chapter 11 – Online Practice Exam in English November 8, 2023 November 9, 2023 Chapter 11 The Government Functions and Scope. Chapter 11 The Government Functions and Scope Multi-choice Practice Exam Question 1) The principle of exclusion is applicable in case of Answers Option 1 Public goods Option 2 Private goods Option 3 Both of above Option 4 None of these Feedback Wrong click Wow ! Correct selection Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 2) If MPC is 0.8, then tax multiplier is Answers Option 1 1 Option 2 8 Option 3 5 Option 4 80 Feedback Wrong click Incorrect selection Welldone ! Correct click. Wrong click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3) In the given equation C = 20 + .8Y, income is 100. Then consumption will be Answers Option 1 20 Option 2 .8 Option 3 20.8 Option 4 100 Feedback Wrong click Incorrect selection Wrong click Correct. You look smart ! Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 4) Revenue receipts Answers Option 1 Reduce assets Option 2 Increase assets Option 3 Neither increase nor reduce Option 4 None of these Feedback Wrong click Wow ! Correct selection Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 5) The expenditures which neither create assets nor reduces liabilities are called Answers Option 1 Revenue expenditure Option 2 Capital expenditure Option 3 Revenue receipts Option 4 None of these Feedback Well done ! Correct option Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6) Fiscal deficit reduced by interest payment is Answers Option 1 Primary deficit Option 2 Total deficit Option 3 Monetized deficit Option 4 Trade deficit Feedback Wow ! Correct selection Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 7) Which of the following are the functions of government ? Answers Option 1 Allocation Option 2 Distribution Option 3 Stabilization Option 4 All of the above Feedback Wrong click Incorrect selection Wrong click Well done ! Correct option. Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 8) Goods in which the consumption should be encouraged are called Answers Option 1 Public good Option 2 Private good Option 3 Club good Option 4 Merits good Feedback Wow ! Correct selection Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 9) Which of the following is an indirect tax ? Answers Option 1 Excise duty Option 2 Sales tax Option 3 Customs duty Option 4 All of these Feedback Wrong click Incorrect selection Wrong click Wow ! Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 10) Balnced budget multiplier is Answers Option 1 One Option 2 Less than one Option 3 More than one Option 4 Zero Feedback Well done ! Correct option Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 11) Which of the following is the AD in a closed economy with government ? Answers Option 1 C + I + G + X Option 2 C + G + NX Option 3 C + I + G – X Option 4 C + I + G Feedback Incorrect selection Wrong click Incorrect selection Well done ! Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 12) Excess of total expenditure over total income excluding borrowing is Answers Option 1 Revenue deficit Option 2 Fiscal deficit Option 3 Primary deficit Option 4 Monetized deficit Feedback Wrong click Well done ! Correct option Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 13) Select the odd one Answers Option 1 Surplus budget Option 2 Balanced budget Option 3 Supplementary budget Option 4 Deficit budget Feedback Wrong click Incorrect selection Congrats ! Correct option Wrong click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 14) Autonomous expenditure, A = 100 and MPC is 0.75 , equilibrium income is Answers Option 1 4000 Option 2 400 Option 3 300 Option 4 133.3 Feedback Wrong click Well done ! Correct option Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 15) Which of the following is not a major item of revenue expenditure ? Answers Option 1 Defence service Option 2 Acqusition of land Option 3 Interest payment Option 4 Subsidies Feedback Wrong click Congrats ! Correct option Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 16) Select the odd one Answers Option 1 Income tax Option 2 Sales tax Option 3 Fees Option 4 Customs duty Feedback Incorrect selection Wrong click Correct. You look smart ! Wrong click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 17) The borrowing of the government to finance deficit in budget leads to Answers Option 1 Revenue Option 2 Public debt Option 3 Taxation Option 4 None of these Feedback Incorrect selection Correct ! Smart selection. Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 18) Government finances deficit in budget by Answers Option 1 Taxation Option 2 Borrowings Option 3 Printing currency Option 4 All of the above Feedback Wrong click Incorrect selection Wrong click Well done ! Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 19) The policy of the government regarding public expenditure, taxation, borrowing and revenue are called Answers Option 1 Fiscal policy Option 2 Budget Option 3 Capital receipt Option 4 None of these Feedback Well done ! Correct option Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 20) The deliberate action in fiscal policy taken by the government to stablize the economy is called Answers Option 1 Fiscal policy Option 2 Discretionary Fiscal policy Option 3 Automatic stablizer Option 4 Budget Feedback Wrong click Correct click. Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) This practice test is prepared by myeconomics.info Note in English Short Note "There is no joy in possession without sharing". Share this page. Whatsapp Telegram Facebook Twitter 00 Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *CommentName* Email* Website Save my name, email, and site URL in my browser for next time I post a comment. 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Multi-choice Practice Exam Question 1) The principle of exclusion is applicable in case of Answers Option 1 Public goods Option 2 Private goods Option 3 Both of above Option 4 None of these Feedback Wrong click Wow ! Correct selection Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 2) If MPC is 0.8, then tax multiplier is Answers Option 1 1 Option 2 8 Option 3 5 Option 4 80 Feedback Wrong click Incorrect selection Welldone ! Correct click. Wrong click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3) In the given equation C = 20 + .8Y, income is 100. Then consumption will be Answers Option 1 20 Option 2 .8 Option 3 20.8 Option 4 100 Feedback Wrong click Incorrect selection Wrong click Correct. You look smart ! Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 4) Revenue receipts Answers Option 1 Reduce assets Option 2 Increase assets Option 3 Neither increase nor reduce Option 4 None of these Feedback Wrong click Wow ! Correct selection Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 5) The expenditures which neither create assets nor reduces liabilities are called Answers Option 1 Revenue expenditure Option 2 Capital expenditure Option 3 Revenue receipts Option 4 None of these Feedback Well done ! Correct option Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6) Fiscal deficit reduced by interest payment is Answers Option 1 Primary deficit Option 2 Total deficit Option 3 Monetized deficit Option 4 Trade deficit Feedback Wow ! Correct selection Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 7) Which of the following are the functions of government ? Answers Option 1 Allocation Option 2 Distribution Option 3 Stabilization Option 4 All of the above Feedback Wrong click Incorrect selection Wrong click Well done ! Correct option. Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 8) Goods in which the consumption should be encouraged are called Answers Option 1 Public good Option 2 Private good Option 3 Club good Option 4 Merits good Feedback Wow ! Correct selection Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 9) Which of the following is an indirect tax ? Answers Option 1 Excise duty Option 2 Sales tax Option 3 Customs duty Option 4 All of these Feedback Wrong click Incorrect selection Wrong click Wow ! Correct selection Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 10) Balnced budget multiplier is Answers Option 1 One Option 2 Less than one Option 3 More than one Option 4 Zero Feedback Well done ! Correct option Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 11) Which of the following is the AD in a closed economy with government ? Answers Option 1 C + I + G + X Option 2 C + G + NX Option 3 C + I + G – X Option 4 C + I + G Feedback Incorrect selection Wrong click Incorrect selection Well done ! Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 12) Excess of total expenditure over total income excluding borrowing is Answers Option 1 Revenue deficit Option 2 Fiscal deficit Option 3 Primary deficit Option 4 Monetized deficit Feedback Wrong click Well done ! Correct option Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 13) Select the odd one Answers Option 1 Surplus budget Option 2 Balanced budget Option 3 Supplementary budget Option 4 Deficit budget Feedback Wrong click Incorrect selection Congrats ! Correct option Wrong click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 14) Autonomous expenditure, A = 100 and MPC is 0.75 , equilibrium income is Answers Option 1 4000 Option 2 400 Option 3 300 Option 4 133.3 Feedback Wrong click Well done ! Correct option Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 15) Which of the following is not a major item of revenue expenditure ? Answers Option 1 Defence service Option 2 Acqusition of land Option 3 Interest payment Option 4 Subsidies Feedback Wrong click Congrats ! Correct option Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 16) Select the odd one Answers Option 1 Income tax Option 2 Sales tax Option 3 Fees Option 4 Customs duty Feedback Incorrect selection Wrong click Correct. You look smart ! Wrong click Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 17) The borrowing of the government to finance deficit in budget leads to Answers Option 1 Revenue Option 2 Public debt Option 3 Taxation Option 4 None of these Feedback Incorrect selection Correct ! Smart selection. Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 18) Government finances deficit in budget by Answers Option 1 Taxation Option 2 Borrowings Option 3 Printing currency Option 4 All of the above Feedback Wrong click Incorrect selection Wrong click Well done ! Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 19) The policy of the government regarding public expenditure, taxation, borrowing and revenue are called Answers Option 1 Fiscal policy Option 2 Budget Option 3 Capital receipt Option 4 None of these Feedback Well done ! Correct option Wrong click Incorrect selection Wrong click Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 20) The deliberate action in fiscal policy taken by the government to stablize the economy is called Answers Option 1 Fiscal policy Option 2 Discretionary Fiscal policy Option 3 Automatic stablizer Option 4 Budget Feedback Wrong click Correct click. Wrong click Incorrect selection Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback)
