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Questions
Define the following term:
Fiscal deficit
Define fiscal policy.
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Solution
Fiscal deficit refers to the total amount of borrowing required by the government to finance its budget deficit, i.e., the excess of government expenditure over government revenue.
RELATED QUESTIONS
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
Monetary policy means regulation of money supply by the monetary authority.
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Citing reason state the advantage of a direct tax over an indirect tax.
What is meant by shifting of tax burden?
Classify the following type of tax into direct and indirect taxes:
Entertainment tax
Classify the following type of tax into direct and indirect taxes:
House tax
Discuss four fiscal policy objectives with reference to India.
Explain the term Incidence of a tax.
Explain briefly two merits of indirect tax.
