Advertisements
Advertisements
Question
Classify the following statement into positive economic or normative economic, with suitable reason:
Government should try to control the rising fiscal deficit.
Advertisements
Solution
Government should try to control the rising fiscal deficit is a normative statement.
This is because this given statement involves personal value judgment and cannot be tested and verified.
APPEARS IN
RELATED QUESTIONS
Distinguish between revenue deficit and fiscal deficit.
Define fiscal deficit.
Give the relationship between the revenue deficit and the fiscal deficit.
Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.
Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.
Discuss the issue of deficit reduction.
When the revenue receipts are less than the revenue expenditures in a government budget, this shortfall is termed as
What is relation between government deficit and government debt?
______ are the transactions between the residents of two countries that take place due to consideration of profit.
______ are those transactions that are undertaken to cover deficit or surplus in autonomous transactions.
Which of the following transactions are correct about ORT?
Which of the following statements is true?
Primary deficit is borrowing requirements of government for making:
The shape of average revenue curve in monopoly is ______
Compare the trends depicted in the figures given below:
| Figure 1: Trends in Fiscal deficit and Primary deficit |
Figure 2: Fiscal deficit as a percent of Budget estimate |
 |
 |
If a government's revenue expenditure is ₹700 crore and its revenue receipts are ₹550 crore, the Revenue Deficit is:
The Primary Deficit shows the borrowing requirement of the government:
Which of the following formulas correctly defines Revenue Receipts?
