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Chapters
Chapter 1: Microeconomics and Macroeconomics: Introduction
2: Demand and Law of Demand
3: Theory of Consumer Behaviour: Marginal Utility and Indifference Curve Analysis
4: Elasticity of Demand
5: Supply - Law of Supply and Price Elasticity of Supply
6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
7: Laws of Returns - Returns to a Factor and Returns to Scale
8: Cost and Revenue Analysis
9: Forms of Market
10: Producer's Equilibrium
11: Determination of Equilibrium Price and Output Under Perfect Competition
SECTION 2: THEORY OF INCOME AND EMPLOYMENT
12: Theory of Income and Employment
SECTION 3: MONEY AND BANKING
13: Money: Meaning and Functions
14: Banks: Commercial Bank and Central Bank
SECTION 4: BALANCE OF PAYMENTS AND EXCHANGE RATE
15: Balance of Payments and Exchange Rate
SECTION 5: PUBLIC FINANCE
▶ 16: Fiscal Policy
17: Government Budget
SECTION 6: NATIONAL INCOME
18: National Income and Circular Flow of Income
19: National Income Aggregates
20: Methods of Measuring National Income
SECTION 7: PROJECT WORK
21: Project Work
22: Model Short Answer Questions
![Frank solutions for Economics [English] Class 12 ISC chapter 16 - Fiscal Policy - Shaalaa.com](/images/economics-english-class-12-isc_6:557367fb4d974c67badae9e1dbdc022d.jpg "Frank solutions for Economics [English] Class 12 ISC chapter 16 - Fiscal Policy")
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Solutions for Chapter 16: Fiscal Policy
Below listed, you can find solutions for Chapter 16 of CISCE Frank for Economics [English] Class 12 ISC.
Frank solutions for Economics [English] Class 12 ISC 16 Fiscal Policy TEST YOURSELF QUESTIONS [Pages 324 - 326]
Select the correct option for each of the following questions:
Which of these are fiscal policy instruments?
taxation
public expenditure
public borrowing
all of these
Which of the following is not a direct tax?
corporate tax
GST
income tax
wealth tax
Which of the following is not an indirect tax?
GST
Excise duty
Import duty
Gift tax
A progressive tax is the one ______.
when the rate of taxation remains the same
when the rate of taxation increases
when the rater of taxation decreases
none of these
Indian tax structure can be broadly described as ______.
progressive
proportional
regressive
degressive
Which of these public expenditure is not a ‘transfer expenditure’?
old-age pension
interest paid on government debt
expenditure incurred on defence
expenditure incurred in providing sickness benefit to the government employees.
Which of these are the methods of redemption of public debt?
debt conversion
terminal annuities
sinking fund
all of these
Deficit financing to meet the excess expenditure by the government leads to ______.
an increase in the supply of money
inflationary rise in prices
undesirable effect on distribution of income
all of these
Very Short Answer Questions.
What does public finance mean?
What do you understand by fiscal policy?
State two objectives of fiscal policy.
State and explain instruments of fiscal policy.
Which are the sources of public revenue?
What is a tax?
Explain any five characteristics of the tax.
Mention any one difference between the impact of tax and the incidence of tax.
What are direct taxes?
Define Indirect tax
Define Indirect tax
Differentiate between direct and indirect taxes.
Differentiate between direct and indirect taxes.
Explain in brief two merits of direct tax.
What are the merits of an indirect tax?
Explain any five demerits of direct tax.
Three demerits of an Indirect tax.
Define proportional tax and show it graphically.
Differentiate between progressive taxation and proportional taxation.
What are progressive taxes.
Distinguish between regressive tax and degressive tax.
What is a degressive tax?
Explain how taxation can be used to reduce inequalities of income.
What is public expenditure?
Distinguish between the following concepts:
Developmental expenditure and non-developmental expenditure.
Distinguish between productive and unproductive public expenditure, citing an example of each.
Differentiate between direct and transfer expenditure.
What is Wagner’s Law?
State two factors to highlight the importance of public expenditure.
How does an increase in public expenditure increase the level of employment in a country?
Explain two ways by which public expenditure promotes economic development.
Mention how public expenditure reduces inequalities of income.
What do you mean by public debt?
Distinguish between internal debt and external debt.
Differentiate between productive and unproductive debt.
Distinguish between short-term and long-term debt.
Mention two reasons responsible for borrowing by the government.
Mention any three methods of redemption of public debt.
What is meant by ‘deficit financing’?
Short Answer Questions
Discuss any two objectives of fiscal policy in a developing economy.
Which are the sources of public revenue?
Define a tax.
Explain the nature of taxes.
Distinguish between direct taxes and indirect taxes.
Distinguish between direct taxes and indirect taxes.
Highlight two differences between sales tax and income tax.
Explain any five demerits of direct tax.
What are the merits of an indirect tax?
Distinguish between proportionate, progressive and regressive tax systems.
Distinguish between regressive tax and degressive tax.
‘Public expenditure helps in increasing production of an economy.’ In this context, discuss any two points of importance of public expenditure.
‘Public expenditure helps in increasing production of an economy.’ In this context, discuss any two points of importance of public expenditure.
Mention two reasons responsible for borrowing by the government.
Explain the following methods of debt redemption:
Refunding
Explain the following method of debt redemption:
Debt conversion
Mention any three methods of redemption of public debt.
What do you mean by deficit financing in the context of the Indian economy?
What role does deficit financing play in promoting economic development?
Is deficit financing inflationary? Give reasons for your answer.
Explain two effects of deficit financing.
In a situation of income inequality, give two ways in which fiscal policy can be used to bring about equity.
Define direct tax
Define Indirect tax
Explain in brief two merits of direct tax.
What are the merits of an indirect tax?
Define progressive taxation.
Define proportional tax and show it graphically.
Define regressive tax.
Define a degressive tax.
Which type of tax, among progressive, proportional, regressive, and degressive, would you support? Give reasons.
What is public expenditure?
Explain different types of public expenditure.
State two factors to highlight the importance of public expenditure.
Discuss the effects of public expenditure on employment.
Discuss the effects of public expenditure on economic growth.
Discuss the effects of public expenditure on inflation.
Discuss the effects of public expenditure on income distribution in an economy.
What do you mean by public debt?
Explain four types of public debt.
Mention two reasons responsible for borrowing by the government.
What do you mean by redemption of public debt?
Mention any three methods of redemption of public debt.
State two objectives of fiscal policy.
State two objectives of fiscal policy.
How can fiscal policy control inflation?
How does the fiscal policy of the government control inflation with the following tools public expenditure?
How does the fiscal policy of the government control inflation with the taxation?
Discuss the role of fiscal policy in an underdeveloped economy.
Discuss the role of fiscal policy in an underdeveloped economy.
Discuss the role of fiscal policy in the economic development of a country.
Explain how equity can be achieved through fiscal policy.
Explain how stability can be achieved through fiscal policy.
Explain how growth can be achieved through fiscal policy.
Solutions for 16: Fiscal Policy
Frank solutions for Economics [English] Class 12 ISC chapter 16 - Fiscal Policy
Shaalaa.com has the CISCE Mathematics Economics [English] Class 12 ISC CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. Frank solutions for Mathematics Economics [English] Class 12 ISC CISCE 16 (Fiscal Policy) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
Further, we at Shaalaa.com provide such solutions so students can prepare for written exams. Frank textbook solutions can be a core help for self-study and provide excellent self-help guidance for students.
Concepts covered in Economics [English] Class 12 ISC chapter 16 Fiscal Policy are Importance of Public Expenditure, Public Debt - Redemption, Deficit Financing, Structure of Public Finance > Public Expenditure, Structure of Public Finance > Public Debt, Structure of Public Finance > Fiscal Policy, Public Finance, Objectives of Fiscal Policy, Instruments of Fiscal Policy - Taxation, Proportional, Progressive and Regressive Taxes, Reasons for Borrowing by the Government, Fiscal Policy in Action, Miscellaneous Objectives of Fiscal Policy, Fiscal Measures for Stabilisation, Methods of Fiscal Policy in Developing Countries, Limitations of Fiscal Policy, Instruments of Fiscal Policy, Structure of Public Finance > Public Revenue, Types of Taxes, Tax Reforms in India.
Using Frank Economics [English] Class 12 ISC solutions Fiscal Policy exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in Frank Solutions are essential questions that can be asked in the final exam. Maximum CISCE Economics [English] Class 12 ISC students prefer Frank Textbook Solutions to score more in exams.
Get the free view of Chapter 16, Fiscal Policy Economics [English] Class 12 ISC additional questions for Mathematics Economics [English] Class 12 ISC CISCE, and you can use Shaalaa.com to keep it handy for your exam preparation.
