Fiscal Policy
Economics ⇒ Government and the Economy
Fiscal Policy starts at 11 and continues till grade 12.
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See sample questions for grade 11
Define fiscal deficit.
Describe the role of fiscal policy in reducing income inequality.
Explain the concept of 'automatic stabilizers' in fiscal policy.
Explain the difference between expansionary and contractionary fiscal policy.
Explain the term 'budgetary deficit'.
Explain the term 'primary deficit'.
If the government borrows from the Reserve Bank of India to finance its deficit, what is the likely impact on money supply?
Suppose the government increases both taxes and expenditure by the same amount. What is the likely effect on aggregate demand?
If the government wants to reduce unemployment, which fiscal policy should it adopt? (1) Expansionary (2) Contractionary (3) Neutral (4) None of these
Which of the following is a capital receipt for the government? (1) Income tax (2) Disinvestment proceeds (3) GST (4) Customs duty
Which of the following is a direct tax? (1) Goods and Services Tax (GST) (2) Income Tax (3) Customs Duty (4) Excise Duty
Which of the following is a discretionary fiscal policy measure? (1) Progressive taxation (2) Unemployment benefits (3) One-time increase in infrastructure spending (4) Subsidies
Fill in the blank: _______ fiscal policy is used to control inflation.
Fill in the blank: _______ is the excess of government’s total expenditure over its total receipts excluding borrowings.
Fill in the blank: _______ is the policy of the government regarding taxation, public expenditure, and public debt.
Fill in the blank: The annual statement of the estimated receipts and expenditure of the government is called the _______.
State whether the following statement is true or false: Fiscal deficit occurs when government expenditure exceeds government revenue.
State whether the following statement is true or false: Fiscal policy can be used to control business cycles.
State whether the following statement is true or false: Fiscal policy can be used to promote economic stability.
True or False: A balanced budget means government expenditure equals government revenue.
