Vidaara.orgClass 11 · Mathematics
CodeVID-M11-WS
Public Finance — Practice Worksheet
Name: ____________________
Roll No.: __________
Date: ____________
General Instructions
- All questions are compulsory.
- Choose the correct option (A, B, C or D) for each question.
- The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each)
15 × 1 = 15 marks
1.
Public finance studies the income and expenditure of the:
- A.Firm
- B.Government
- C.Household
- D.Bank
2.
The annual statement of the government's estimated receipts and expenditure is the:
- A.Budget
- B.Tax
- C.Debt
- D.Subsidy
3.
The two parts of the budget are the revenue budget and the:
- A.Capital budget
- B.Tax budget
- C.Loan budget
- D.Private budget
4.
A budget where receipts exceed expenditure is a:
- A.Deficit budget
- B.Surplus budget
- C.Balanced budget
- D.Capital budget
5.
A budget where expenditure exceeds receipts is a:
- A.Surplus budget
- B.Deficit budget
- C.Balanced budget
- D.Revenue budget
6.
Income the government receives is called:
- A.Public expenditure
- B.Public revenue
- C.Public debt
- D.Subsidy
7.
Fees, fines and profits of public enterprises are:
- A.Tax revenue
- B.Non-tax revenue
- C.Public debt
- D.Capital expenditure
8.
A compulsory payment to the government with no direct return is a:
- A.Fee
- B.Tax
- C.Fine
- D.Loan
9.
A tax whose burden cannot be shifted is a:
- A.Direct tax
- B.Indirect tax
- C.Fee
- D.Subsidy
10.
Income tax is an example of a:
- A.Direct tax
- B.Indirect tax
- C.Non-tax revenue
- D.Capital receipt
11.
GST is an example of a:
- A.Direct tax
- B.Indirect tax
- C.Fee
- D.Subsidy
12.
Spending on salaries and interest that creates no asset is:
- A.Capital expenditure
- B.Revenue expenditure
- C.Public debt
- D.Tax revenue
13.
Building roads and dams is an example of:
- A.Revenue expenditure
- B.Capital expenditure
- C.Non-tax revenue
- D.A direct tax
14.
Money the government borrows to meet a deficit is:
- A.Public debt
- B.Public revenue
- C.A subsidy
- D.A tax
15.
Debt taken from abroad is called:
- A.Internal debt
- B.External debt
- C.Tax debt
- D.Capital revenue
Section B — Challenge / Olympiad (2 marks each)
10 × 2 = 20 marks
16.
A government spends ₹40 lakh crore but collects only ₹32 lakh crore in receipts. Its budget is in:
- A.Deficit (must borrow the gap)
- B.Surplus
- C.Balance
- D.Profit
17.
Direct taxes like income tax help reduce inequality mainly because they are usually:
- A.Progressive (the rich pay a higher rate)
- B.Regressive
- C.Equal for all
- D.Shifted to the poor
18.
GST charged on a chocolate bar is paid to the government by the shop but finally borne by the:
- A.Consumer who buys it
- B.Shopkeeper alone
- C.Manufacturer only
- D.Government
19.
Indirect taxes are sometimes called regressive because they:
- A.Take the same amount from rich and poor buyers
- B.Fall only on the rich
- C.Are never collected
- D.Reduce all prices
20.
Capital expenditure is considered more developmental than revenue expenditure because it:
- A.Creates lasting assets like roads and schools
- B.Pays only salaries
- C.Creates no assets
- D.Is borrowed money
21.
A very high public debt strains future budgets chiefly through rising:
- A.Interest payments
- B.Tax refunds
- C.Subsidies to the rich
- D.Capital assets
22.
The government taxes cigarettes and alcohol heavily. Besides revenue, this shows taxes can be used to:
- A.Discourage harmful consumption
- B.Increase pollution
- C.Hide the budget
- D.Remove all taxes
23.
Profits earned by a government-owned company are part of the government's:
- A.Non-tax revenue
- B.Tax revenue
- C.Public debt
- D.Capital expenditure
24.
Borrowing from the public and banks within the country adds to the government's:
- A.Internal debt
- B.External debt
- C.Tax revenue
- D.Surplus
25.
Through the budget, the government can reduce inequality by taxing the rich more and:
- A.Spending on welfare schemes for the poor
- B.Cutting all spending
- C.Banning taxes
- D.Borrowing forever
Answer Key
Section A — Multiple Choice (1 mark each)
- (B) Government
- (A) Budget
- (A) Capital budget
- (B) Surplus budget
- (B) Deficit budget
- (B) Public revenue
- (B) Non-tax revenue
- (B) Tax
- (A) Direct tax
- (A) Direct tax
- (B) Indirect tax
- (B) Revenue expenditure
- (B) Capital expenditure
- (A) Public debt
- (B) External debt
Section B — Challenge / Olympiad (2 marks each)
- (A) Deficit (must borrow the gap)
- (A) Progressive (the rich pay a higher rate)
- (A) Consumer who buys it
- (A) Take the same amount from rich and poor buyers
- (A) Creates lasting assets like roads and schools
- (A) Interest payments
- (A) Discourage harmful consumption
- (A) Non-tax revenue
- (A) Internal debt
- (A) Spending on welfare schemes for the poor
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