Chapter 14 - Public Economics Economics Solutions for Class 12 Commerce Economics

Chapter 14 - Public Economics

Economics Solutions for Class 12 Commerce Economics

Fill in the blanks with appropriate alternatives given in the brackets.

Match the following

State whether the following statements are true or false.

1. The budget is a monthly statement.

2. Fiscal policy is related to public revenue and public expenditure.

3. Indirect taxes are paid directly by people to the government.

4. Financial year in India is from 1st March to 28th February.

Define or Explain.

1. Fine and Penalty

2. Budget

3. Plan expenditure

4. Recovery of Debt

Give reason of Explain the statement

1. Income collected from tax is a main source of government revenue.

2. Revenue receipts and Revenue expenditure is known as Revenue Budget.

3. Government revenue is more than government expenditure.

Distinguish between:

1. Revenue budget and capital budget

2. Direct tax and indirect tax

3. Deficit budget and balanced budget

Write short notes on:

1. Capital expenditure

2. Revenue receipts

Answer the following question

What are the main components of budget?

What are the source of non-tax revenue?

Explain the government’s development and non-development expenditure.

State with reasons whether you agree or disagree with the following statements.

1. Capital budget consists of revenue receipts and revenue expenditure.

2. When government expenditure is greater than government revenue, it is called Surplus Budget.

3. During the period of inflation, Surplus Budget is advisable.

Answer in detail:

1. Explain the concept of Balanced Budget.

2. Explain capital receipts and capital expenditure as a part of Capital Budget.