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SSC Economics Sample Paper NCERT Sample Paper-2

  • question_answer
    Which of the following statements correctly define a Fiscal Policy?
    1. The expenditure and revenue measures or instruments employed by the state to influence the general level of economic activity is known as fiscal policy.
    2. Changes in taxes and expenditures which aim at full employment and price level stability and other objectives is fiscal policy.
    Codes:

    A) 1 only

    B)        2 only

    C) Both are correct

    D) both are wrong

    Correct Answer: C

    Solution :

    Objectives of fiscal policy are:
    1. To mobilize adequate resources.
    2. To promote private sector development.
    3. To arrange an optimum utilization of resources.
    4. To increase rate of capital formation.
    5. To control inflationary pressures.
    6. To remove poverty and unemployment.
    7. To attain objective of socialistic pattern of society.
    8. To reduce regional disparities.
    9. To reduce the incidence of inequality.


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