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 12
Define fiscal policy.
Describe two objectives of fiscal policy in India.
Explain the concept of 'automatic stabilizers' in fiscal policy.
Explain the concept of 'crowding out' in the context of fiscal policy.
Explain the difference between a balanced budget and a deficit budget.
Explain the difference between revenue deficit and fiscal deficit.
If the government spends Rs. 10,000 crore and its total receipts (excluding borrowings) are Rs. 8,000 crore, what is the fiscal deficit?
The government of India decides to reduce subsidies on petroleum products. This is an example of which type of fiscal policy? (1) Expansionary (2) Contractionary (3) Neutral (4) None of these
If the government increases taxes and reduces its expenditure, what type of fiscal policy is it following? (1) Expansionary (2) Contractionary (3) Neutral (4) None of these
If the government wants to reduce income inequality, which fiscal policy measure should it adopt? (1) Increase indirect taxes (2) Increase direct taxes on the rich (3) Reduce subsidies (4) Increase defense expenditure
The government of India decides to reduce subsidies on petroleum products. This is an example of which type of fiscal policy? (1) Expansionary (2) Contractionary (3) Neutral (4) None of these
Which of the following is a capital expenditure? (1) Salaries (2) Interest payments (3) Construction of highways (4) Subsidies
Fill in the blank: _______ fiscal policy is used to control inflation.
Fill in the blank: The annual statement of the estimated receipts and expenditure of the government is called the _______.
Fill in the blank: The fiscal deficit is calculated as total expenditure minus _______.
Fill in the blank: The Goods and Services Tax (GST) is an example of an _______ tax.
State whether the following statement is true or false: Fiscal policy can be used to control inflation.
State whether the following statement is true or false: Fiscal policy is always effective in controlling inflation.
State whether the following statement is true or false: Fiscal policy is formulated by the Reserve Bank of India.
True or False: Fiscal policy can be used to achieve equitable distribution of income.
