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Question
Instruments of fiscal policy is:
Options
taxation
public expenditure
public debt
All of the above
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Solution
All of the above
Explanation:
Instruments of fiscal policy include taxation, public expenditure, and public debt. These are the tools the government uses to influence the economy.
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RELATED QUESTIONS
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
State the difference between income tax and expenditure tax.
Classify the following types of tax into direct and indirect taxes:
- Entertainment tax
- Income tax
- House tax
- Sales tax
Which one is better progressive or regressive taxation and why?
Explain clearly tour ways by which the state can promote economic growth and development.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
Explain the following with examples:
Progressive tax
