Q13 of 25 Page 1

Which of the following is a capital receipt in the Government Budget?

Capital receipts are those receipts that either create liability or cause a reduction in the assets of the government. Sale of shares of a Public Sector Undertaking (PSU) to X Limited (Private Company) is a capital receipt in the Government Budget.


OR


Nontax revenue is the revenue earned by the government from sources other than taxes. Interest and dividend are examples of nontax revenue.

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11

What is meant by diminishing returns to a factor? Discuss briefly, any

two reasons behind its operation.


 12

(a) What is the slope of an Indifference curve?

(b) A rational consumer is consuming only two goods, Good X and Good Y. The prices of the goods are < 20 and < 10 respectively. Her total money income is < 200. Answer the following questions, using the given information :


(i) State her Budget line equation.


(ii) State the slope of the Budget line of the consumer.


(iii) If she decides to spend her entire income on Good Y, how many units of Good Y can she buy?


OR


Discuss the law of equi-marginal utility.


 14

If the legal reserve ratio is 20%, the value of money multiplier would be __________ . (Choose the correct alternative)

 15

If in an economy, the Estimated Receipts of the government during ayear are lesser than the Estimated Expenditure, the budget would be called _________ budget. (Fill up the blank)