81. Which of the following is a component of Revenue Receipts?
a) Borrowings
b) Corporate tax
c) Recovery of loans
d) Sale of public sector assets
Answer:
b) Corporate tax
Explanation:
Revenue receipts are non-redeemable receipts that neither create a liability nor reduce assets. Taxes, such as corporate tax, are the primary source of the government’s revenue receipts.
82. Which of the following is NOT an objective of government budget?
a) Redistribution of income
b) Economic stability
c) Maximizing profit
d) Reallocation of resources
Answer:
c) Maximizing profit
Explanation:
Unlike private businesses, the government’s budget aims at public welfare, equity, and stability (redistributing wealth, reallocating resources) rather than maximizing corporate profit.
83. Stagflation refers to
a) High inflation + High growth
b) High inflation + High unemployment
c) Low inflation + Low growth
d) Deflation + Unemployment
Answer:
b) High inflation + High unemployment
Explanation:
Stagflation is a contradictory economic phenomenon characterized by slow economic growth (stagnation) and high unemployment occurring simultaneously with rising prices (inflation).
84. What replaced the MRTP Act to promote competition?
a) Competition Act (2002)
b) FEMA
c) SEBI Act
d) Companies Act
Answer:
a) Competition Act (2002)
Explanation:
The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 was repealed and replaced by the Competition Act, 2002, to shift the focus from restricting monopolies to actively promoting healthy market competition.
85. Which type of unemployment is caused by technological changes?
a) Cyclical unemployment
b) Structural unemployment
c) Seasonal unemployment
d) Frictional unemployment
Answer:
b) Structural unemployment
Explanation:
Structural unemployment occurs when there is a mismatch between the skills workers possess and the skills needed by employers, often driven by technological advancements making certain jobs obsolete.
