Which of the following is the formula for calculating fiscal deficit? MCQ with Answer and Explanation

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Which of the following is the formula for calculating fiscal deficit?

A. Total expenditure − Total receipts including borrowings

B. Revenue expenditure − Revenue receipts

C. Capital expenditure − Capital receipts

D. Total expenditure − Total receipts excluding borrowings

Answer: Option D

Solution (By JKSSB Mock Tests)

Fiscal deficit = Total expenditure − (Revenue receipts + Non-debt capital receipts). It indicates the total borrowing requirement of the government.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Essential Commodities Act' was amended in 2020 to deregulate which commodities?

A. Fertilizers

B. Cereals, pulses, oilseeds, edible oils and onion

C. Medicines

D. Petroleum products

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Correct Answer: Option B

Explanation:
The Essential Commodities (Amendment) Act 2020 deregulated cereals, pulses, oilseeds, edible oils and onion.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the 'Modern Supply-Side Economics' emphasis?

A. Only monetary expansion

B. Only demand management through fiscal expansion

C. Complete neglect of incentives

D. Tax incentives and structural reforms to raise potential output and improve incentives to work, save and invest

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Correct Answer: Option D

Explanation:
Supply-side approaches stress policies that expand the productive capacity of the economy by improving incentives, reducing distortions and raising the efficiency of resource allocation.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of urban economics, 'Agglomeration Economies' refer to:

A. The costs of congestion only

B. The productivity benefits that firms and workers derive from locating in close proximity to one another

C. The complete absence of any spatial effects

D. Only the disadvantages of density

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Correct Answer: Option B

Explanation:
Agglomeration economies are the benefits—knowledge spillovers, labour-market pooling, input sharing—that arise when economic activity is concentrated in space, helping to explain the existence and growth of cities.

This question belongs to: Economy GK Economy Set 1

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