Plus Two / 12th Economics - Book Back Answers - Chapter 9 - English Medium
Chapter 9: Fiscal Economics
Tamil Nadu Board 12th Standard Economics - Chapter 9: Book Back Answers and Solutions
This post covers the book back answers and solutions for Chapter 9 from the Tamil Nadu State Board 12th Standard Economics textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.
We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.
By going through this material, you’ll gain a strong understanding of Chapter 9 along with the corresponding book back questions and answers (PDF format).
Question Types Covered:
- 1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following
- 2 Mark Questions: Answer briefly
- 3, 4, and 5 Mark Questions: Answer in detail
All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.
All the best, Class 12 students! Prepare well and aim for top scores. Thank you!
Chapter 9: Fiscal Economics
I. Choose the correct answer.
1. The modern state is
a) Laissez-faire state
b) Aristocratic state
c) Welfare state
d) Police state
Answer Key:
c) Welfare state
2. One of the following is NOT a feature of private finance
a) Balancing of income and expenditure
b) Secrecy
c) Saving some part of income
d) Publicity
Answer Key:
d) Publicity
3. The tax possesses the following characteristics
a) Compulsory
b) No quid pro quo
c) Failure to pay is offence
d) All the above
Answer Key:
d) All the above
4. Which of the following canons of taxation was not listed by Adam smith?
a) Canon of equality
b) Canon of certainty
c) Canon of convenience
d) Canon of simplicity
Answer Key:
d) Canon of simplicity
5. Consider the following statements and identify the correct ones.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
ii. The Constitution also provides for transferring certain tax revenues from union list to states.
a) i only
b) ii only
c) both
d) none
Answer Key:
b) ii only
6. GST is equivalence of
a) Sales tax
b) Corporation tax
c) Income tax
d) Local tax
Answer Key:
a) Sales tax
7. The direct tax has the following merits except
a) equity
b) convenient
c) certainty
d) civic consciousness
Answer Key:
b) convenient
8. Which of the following is a direct tax?
a) Excise duty
b) Income tax
c) Customs duty
d) Service tax
Answer Key:
b) Income tax
9. Which of the following is not a tax under Union list?
a) Personal Income Tax
b) Corporation Tax
c) Agricultural Income Tax
d) Excise duty
Answer Key:
c) Agricultural Income Tax
10. “Revenue Receipts” of the Government do not include
a) Interest
b) Profits and dividends
c) Recoveries and loans
d) Rent from property
Answer Key:
d) Rent from property
11. The difference between revenue expenditure and revenue receipts is
a. Revenue deficit
b. Fiscal deficit
c. Budget deficit
d. Primary deficit
Answer Key:
a. Revenue deficit
12. The difference between total expenditure and total receipts including loans and other liabilities is called
a. Fiscal deficit
b. Budget deficit
c. Primary deficit
d. Revenue deficit
Answer Key:
a. Fiscal deficit
13.The primary purpose of deficit financing is
a) Economic development
b) Economic stability
c) Economic equality
d) Employment generation
Answer Key:
a) Economic development
14. Deficit budget means
a) An excess of government’s revenue over expenditure
b) An excess of government’s current expenditure over its current revenue
c) An excess of government’s total expenditure over its total revenue
d) None of above
Answer Key:
c) An excess of government’s total expenditure over its total revenue
15. Methods of repayment of public debt is
a) Conversion
b) Sinking fund
c) Funded debt
d) All these
Answer Key:
d) All these
16. Conversion of public debt means exchange of
a) new bonds for the old ones
b) low interest bonds for higher interest bonds
c) Long term bonds for short term bonds
d) All the above
Answer Key:
b) low interest bonds for higher interest bonds
17. The word budget has been derived from the French word “bougette” which means
a) A small bag
b) An empty box
c) A box with papers
d) None of the above
Answer Key:
a) A small bag
18. Which one of the following deficits does not consider borrowing as a receipt?
a) Revenue deficit
b) Budgetary deficit
c) Fiscal deficit
d) Primary deficit
Answer Key:
c) Fiscal deficit
19. Finance Commission determines
a) The finances of Government of India
b) The resources transfer to the states
c) The resources transfer to the various departments
d) None of the above
Answer Key:
b) The resources transfer to the states
20. Consider the following statements and identify the right ones.
i. The finance commission is appointed by the President
ii. The tenure of Finance commission is five years
a) i only
b) ii only
c) both
d) none
Answer Key:
c) both
a) Laissez-faire state
b) Aristocratic state
c) Welfare state
d) Police state
Answer Key:
c) Welfare state
2. One of the following is NOT a feature of private finance
a) Balancing of income and expenditure
b) Secrecy
c) Saving some part of income
d) Publicity
Answer Key:
d) Publicity
3. The tax possesses the following characteristics
a) Compulsory
b) No quid pro quo
c) Failure to pay is offence
d) All the above
Answer Key:
d) All the above
4. Which of the following canons of taxation was not listed by Adam smith?
a) Canon of equality
b) Canon of certainty
c) Canon of convenience
d) Canon of simplicity
Answer Key:
d) Canon of simplicity
5. Consider the following statements and identify the correct ones.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
ii. The Constitution also provides for transferring certain tax revenues from union list to states.
a) i only
b) ii only
c) both
d) none
Answer Key:
b) ii only
6. GST is equivalence of
a) Sales tax
b) Corporation tax
c) Income tax
d) Local tax
Answer Key:
a) Sales tax
7. The direct tax has the following merits except
a) equity
b) convenient
c) certainty
d) civic consciousness
Answer Key:
b) convenient
8. Which of the following is a direct tax?
a) Excise duty
b) Income tax
c) Customs duty
d) Service tax
Answer Key:
b) Income tax
9. Which of the following is not a tax under Union list?
a) Personal Income Tax
b) Corporation Tax
c) Agricultural Income Tax
d) Excise duty
Answer Key:
c) Agricultural Income Tax
10. “Revenue Receipts” of the Government do not include
a) Interest
b) Profits and dividends
c) Recoveries and loans
d) Rent from property
Answer Key:
d) Rent from property
11. The difference between revenue expenditure and revenue receipts is
a. Revenue deficit
b. Fiscal deficit
c. Budget deficit
d. Primary deficit
Answer Key:
a. Revenue deficit
12. The difference between total expenditure and total receipts including loans and other liabilities is called
a. Fiscal deficit
b. Budget deficit
c. Primary deficit
d. Revenue deficit
Answer Key:
a. Fiscal deficit
13.The primary purpose of deficit financing is
a) Economic development
b) Economic stability
c) Economic equality
d) Employment generation
Answer Key:
a) Economic development
14. Deficit budget means
a) An excess of government’s revenue over expenditure
b) An excess of government’s current expenditure over its current revenue
c) An excess of government’s total expenditure over its total revenue
d) None of above
Answer Key:
c) An excess of government’s total expenditure over its total revenue
15. Methods of repayment of public debt is
a) Conversion
b) Sinking fund
c) Funded debt
d) All these
Answer Key:
d) All these
16. Conversion of public debt means exchange of
a) new bonds for the old ones
b) low interest bonds for higher interest bonds
c) Long term bonds for short term bonds
d) All the above
Answer Key:
b) low interest bonds for higher interest bonds
17. The word budget has been derived from the French word “bougette” which means
a) A small bag
b) An empty box
c) A box with papers
d) None of the above
Answer Key:
a) A small bag
18. Which one of the following deficits does not consider borrowing as a receipt?
a) Revenue deficit
b) Budgetary deficit
c) Fiscal deficit
d) Primary deficit
Answer Key:
c) Fiscal deficit
19. Finance Commission determines
a) The finances of Government of India
b) The resources transfer to the states
c) The resources transfer to the various departments
d) None of the above
Answer Key:
b) The resources transfer to the states
20. Consider the following statements and identify the right ones.
i. The finance commission is appointed by the President
ii. The tenure of Finance commission is five years
a) i only
b) ii only
c) both
d) none
Answer Key:
c) both
II.Answer the following questions.
12th Economics (soon)
III. Answer the following questions.
12th Economics (Soon)
IV. Answer the following questions.
12th Economics (Soon)
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