Advertisements
Advertisements
Question
Fiscal policy means public expenditure and tax policy of the government.
Options
True
False
Advertisements
Solution
This statement is True.
Explanation:
Fiscal policy refers to the government's use of public expenditure (spending) and tax policies to influence the economy.
APPEARS IN
RELATED QUESTIONS
The essential feature of a tax.
______ are those taxes which are paid by the same person on whom they have been imposed.
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 |
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
Which of the statement is true for income tax?
What is meant by shifting of tax burden?
State two drawbacks of direct taxes.
State the four merits of a direct tax.
