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AP Economy and Budget Highlights · Chapter 42
Practice set 4

Try all ten questions before reading their answers.

31. Why is a “major port” classification not a cargo ranking?

A. All major ports are inland B. It is a legal-administrative category C. Cargo cannot be counted D. It changes every day

Answer B. The major/non-major distinction refers to governance, not simply tonnage.

32. Which AP port is in the central major-port framework?

A. Gangavaram B. Krishnapatnam C. Visakhapatnam D. Kakinada Anchorage

Answer C. Visakhapatnam is AP's centrally administered major port.

33. An urban stormwater drain can affect GSDP because it:

A. Is only ceremonial B. Reduces flood disruption to work and transport C. Is counted as a crop D. Eliminates all inflation

Answer B. Reliable drainage can protect mobility and business continuity.

34. A school building is generally an example of:

A. Capital expenditure B. Tax devolution C. Non-tax revenue D. Interest receipt

Answer A. Construction creates a long-lived public asset.

35. Teacher salaries are generally:

A. Capital receipts B. Revenue expenditure C. Public debt D. Exports

Answer B. Routine staffing costs are ordinarily current or revenue expenditure.

36. A pension payment is ordinarily:

A. Revenue expenditure B. A port asset C. GSDP at constant prices D. Capital receipt

Answer A. Pensions are current transfers, not creation of a fixed asset.

37. Which statement about an allocation is safest?

A. It proves the asset is complete B. It proves all beneficiaries were paid C. It provides a budget provision D. It is an audited result

Answer C. Actual release, payment and service delivery must be checked separately.

38. Why might an AP school-education department total differ from the sectoral general-education total?

A. One must be fabricated B. Their classification scope can differ C. Both are debt stocks D. The financial year has 11 months

Answer B. Department and sector groupings can cover different heads.

39. The BE 2026-27 general-education sectoral total is about:

A. ₹34,978.14 crore B. ₹19,306.04 crore C. ₹14,538.68 crore D. ₹21,624.09 crore

Answer A. The sectoral table gives ₹34,978.14 crore.

40. The BE 2026-27 medical-services sectoral total is about:

A. ₹19,306.04 crore B. ₹34,978.14 crore C. ₹53,190.29 crore D. ₹3,161.40 crore

Answer A. The official sectoral table shows ₹19,306.04 crore.

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