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Question
Classify the following statement into positive economic or normative economic, with suitable reason:
Government should try to control the rising fiscal deficit.
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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.
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RELATED QUESTIONS
Fiscal deficit equals :
(a) Interest payments
(b) Borrowings
(c) Interest payments less borrowing
(d) Borrowing less interest payments
Explain 'Revenue Deficit in a Government budget? What does it indicate?
Define fiscal deficit.
Give the relationship between the revenue deficit and the fiscal deficit.
Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by C = 100 + 0.75Y (a) What is the level of equilibrium income? (b) Calculate the value of the government expenditure multiplier and the tax multiplier. (c) If government expenditure increases by 200, find the change in equilibrium income.
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What do you understand by G.S.T?
Answer the following question.
In the given figure, what does the gap 'KT' represent? State any two fiscal measures to correct the situation.
Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Fiscal Deficit = Total Budget Expenditure - Total Budget Receipts (Net of borrowing)
Statement 2: Primary Deficit = Fiscal Deficit + Interest Payments.
The difference between fiscal deficit and interest payment is known as ______
What is relation between government deficit and government debt?
______ are those transactions that are undertaken to cover deficit or surplus in autonomous transactions.
If India exports goods worth ₹20 crores and imports goods worth ₹30 crores, it will have a ______
Identify the correctly matched pair of the items in Column A to those in Column B:
| Column A | Column B | ||
| 1 | Fiscal Deficit | (a) | Other than interest payments |
| 2 | Primary Deficit | (b) | Borrowings less interest payments |
| 3 | Revenue Deficit | (c) | Borrowings |
| 4 | Tax Deficit | (d) | Borrowings in government budget |
The shape of average revenue curve in monopoly is ______
On the basis of the given information, calculate the value of:
- Fiscal deficit
- Primary deficit
| S.No. | Items | 2021-22 (₹ in crore) |
| (i) | Revenue Receipts | 20 |
| (ii) | Capital Expenditure | 15 |
| (iii) | Revenue Deficit | 10 |
| (iv) | Non-debt creating capital receipts | 50% of revenue receipts |
| (v) | Interest Payments | 4 |
A large amount of fiscal deficit proves to be counter productive. Give any two reasons in support of this statement.
