Download App

Government Budget and Economy — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsGovernment Budget and Economy6 Marks
Question
How is tax revenue different from administrative revenue?
✓

Answer

Tax is the main source of revenue of the government. Tax revenue is the revenue that arises on account of taxes levied by the government. It consists of the proceeds of taxes levied by the government. Taxes are of two types, i.e., direct and indirect. Direct taxes are those taxes levied immediately on the property and income of persons, e.g., income tax, corporate tax, wealth tax, etc, whereas indirect taxes are the taxes levied on the production and sale of the goods like sales taxes, excise duty, etc. On the other hand, administrative revenue is revenue that arises on account of the administrative function of the government. It includes fees (college/ school), license fees paid to get permission to perform a service, fines and penalties levied for an infringement of a law, forfeitures of surety or bonds by courts and escheat which means claim of the government on the property of a person who dies without having any legal heir or without leaving a will.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "6 Marks Question" from Government Budget and Economy→Government Budget and Economy — all question types→Economics STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

Explain with the help of saving and investment curves, the equilibrium level of income in an economy. Is equality between saving and investment necessary for full employment?
OR
Explain with the help of saving and investment curve the equilibrium level of income. Does equilibrium level of income always indicate full employment in the economy ? Explain.
→
Calculate net national disposable income from the following data:
  (Rs. in Crores)
  1. Gross domestic product at market price
 2000
  1. Net current transfers to rest of the world
 (-)200
  1. Net indirect taxes
 150
  1. Net factor income to abroad
 60
  1. National debt interest
 70
  1. Consumption of fixed capital
 200
  1. Current transfers from Government
 150
→
How should the following be treated in estimating national income of a country? You must give reason for your answer.
  1. Taking care of aged parents.
  2. Payment of corporate tax.
  3. Expenditure on providing police services by the government.
→
Explain the role of the following in correcting 'deficient demand' in an economy:
  1. Open market operations.
  2. Bank rate.
→
Calculate National Income from the following data:
  (Rs. in crores)
  1. Private final consumption expenditure
 900
  1. Profit
 100
  1. Government final consumption expenditure
 400
  1. Net indirect taxes
 100
  1. Gross domestic capital formation
 250
  1. Change in stock
 50
  1. Net factor income from abroad
 (-)40
  1. Consumption of fixed capital
 20
  1. Net imports
 30
→
From the following data, calculate (a) Gross Domestic Product at Factor Cost and (b) Factor Income To Abroad:
  (Rs. in $000$ crore)
  1. Compensation of employees
 $800$
  1. Profits
 $200$
  1. Dividends
 $50$
  1. Gross national product at market price
 $1,400$
  1. Rent
 $150$
  1. Interest
 $100$
  1. Gross domestic capital formation
 $300$
  1. Net fixed capital formation
 $200$
  1. Change in stock
 $50$
  1. Factor income from abroad
 $60$
  1. Net indirect taxes
 $120$
→
Explain with the help of a diagram, how equilibrium level of income in an economy is determined by saving and investment curves? Will there always be full employment at equilibrium level of income?
→
How will you treat the following while estimating domestic factor income of India? Give reasons for your answer.
  1. Remittances from non-resident Indians to their families in India.
  2. Rent paid by the embassy of Japan in India to a resident Indian.
  3. Profits earned by branches of foreign bank in India.
→
What are the main functions of money? How does money overcome the shortcomings of a barter system?
→
Given the following data, find the missing value of 'Government Final Consumption Expenditure' and 'Mixed Income of Self Employed'.
S.No. Particulars Amount
(In ₹ crores)
(i) National Income 71,000
(ii) Gross Domestic Capital Formation 10,000
(iii) Government Final Consumption Expenditure ?
(iv) Mixed Income of Self Employed ?
(v) Net Factor Income from Abroad 1,000
(vi) Net Indirect Taxes 2,000
(vii) Profits 1,200
(viii) Wages & Salaries 15,000
(ix) Net Exports 5,000
(x) Private Final Consumption Expenditure 40,000
(xi) Consumption of Fixed Capital 3,000
(xii) Operating Surplus 30,000
→