The term 'Primary Deficit' indicates: MCQ with Answer and Explanation

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The term 'Primary Deficit' indicates:

A. Fiscal deficit including interest payments

B. Budgetary deficit only

C. Fiscal deficit excluding interest payments

D. Revenue deficit excluding interest payments

Answer: Option C

Solution (By JKSSB Mock Tests)

Primary deficit = Fiscal deficit − Interest payments. It shows the borrowing requirement of the government excluding the interest burden of past debt.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

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

A. 28%

B. 18%

C. 5%

D. 12%

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Correct Answer: Option B

Explanation:
Courier services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

Countervailing duties are imposed to:

A. promote exports

B. offset subsidies given by foreign governments to their exporters

C. restrict foreign investment

D. increase domestic consumption

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Correct Answer: Option B

Explanation:
Countervailing duties offset foreign export subsidies.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Consumer Equilibrium' under utility analysis is achieved when:

A. MU of a commodity is equal to its price

B. Price is zero

C. Marginal utility is maximum

D. Total utility is zero

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Correct Answer: Option A

Explanation:
A consumer is in equilibrium when the marginal utility derived from a commodity equals its price (or MU per unit of money is equalised across commodities).

This question belongs to: Economy GK Economy Set 1

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