A zero-primary deficit indicates that: MCQ with Answer and Explanation

A zero-primary deficit indicates that:
A. revenue deficit is zero
B. fiscal deficit equals interest payments
C. total expenditure equals revenue receipts
D. there is no fiscal deficit
Answer: Option B
Solution (By JKSSB Mock Tests)
Primary deficit is fiscal deficit minus interest payments; zero primary deficit means fiscal deficit equals interest payments.

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Practice More Economy Set 1 Questions

Question #1
The term 'Gross Fixed Capital Formation' includes:
A. Only inventory investment
B. Only construction of buildings
C. Only financial investments
D. Investment in fixed assets such as machinery, buildings and infrastructure

Correct Answer: Option D


Explanation:
Gross Fixed Capital Formation refers to the net addition to the stock of fixed assets such as plant, machinery, buildings and infrastructure during a period.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Economic Survey' in India is published by:
A. RBI
B. NITI Aayog
C. Ministry of Finance
D. NSO

Correct Answer: Option C


Explanation:
Economic Survey is published by the Ministry of Finance.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of the 'Adaptive Expectations' hypothesis?
A. Agents form expectations solely on the basis of past values of the variable
B. Expectations are always correct
C. Only future information matters
D. Agents use all available information efficiently

Correct Answer: Option A


Explanation:
Under adaptive expectations, agents revise their expectations gradually on the basis of past forecast errors, so that expectations are a weighted average of past observations.

This question belongs to: Economy GK Economy Set 1