Practice Budgeting and Budget Deficit - 5.7 | Chapter 5: Public Finance | ICSE Class 12 Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is a surplus budget?

πŸ’‘ Hint: Think about the government's income versus its spending.

Question 2

Easy

What happens in a budget deficit?

πŸ’‘ Hint: Remember how governments manage their finances.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is a budget deficit?

  • A situation where revenues exceed expenditures
  • A situation where expenditures exceed revenues
  • When income equals expenses

πŸ’‘ Hint: Remember the definition of a deficit.

Question 2

True or False: A surplus budget allows for future investments.

  • True
  • False

πŸ’‘ Hint: Consider the benefits of having extra funds.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A government has a deficit of $500 million. It expects to bring in $300 million in revenue next year. If it plans to maintain its current level of spending, how much will it need to borrow, and what adjustments might it consider?

πŸ’‘ Hint: Think of ways to balance the books without continual borrowing.

Question 2

Explain how a country might recover from a prolonged period of budget deficits. What strategies could be implemented?

πŸ’‘ Hint: Consider government policies used during economic crises.

Challenge and get performance evaluation