Disinvestment in a public sector enterprise is classified in the government budget as: MCQ with Answer and Explanation

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Disinvestment in a public sector enterprise is classified in the government budget as:

A. revenue expenditure

B. revenue receipt

C. capital receipt

D. transfer payment

Answer: Option C

Solution (By JKSSB Mock Tests)

Disinvestment proceeds are capital receipts as they arise from sale of assets.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is the correct sequence of stages in the business cycle?

A. Peak, Expansion, Trough, Contraction

B. Trough, Peak, Expansion, Contraction

C. Expansion, Peak, Contraction, Trough

D. Contraction, Expansion, Peak, Trough

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Correct Answer: Option C

Explanation:
The typical stages of a business cycle are expansion (recovery), peak (boom), contraction (recession) and trough (depression), and then the cycle repeats.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of the 'Life-Cycle Hypothesis' of consumption?

A. Consumption depends only on current income

B. Individuals plan consumption over their entire lifetime

C. Only permanent income matters and age is irrelevant

D. Saving is independent of age

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Correct Answer: Option B

Explanation:
The life-cycle hypothesis, associated with Modigliani, posits that individuals smooth consumption over their lifetime by saving during working years and dissaving during retirement.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on airline services is:

A. 18% for all classes

B. 5% for all classes

C. 5% economy and 12% business class

D. 12% for all classes

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Correct Answer: Option C

Explanation:
Economy class air travel is 5%, business class is 12%.

This question belongs to: Economy GK Economy Set 1

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