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    Class 12th CD Economics Worksheet 2 PDF

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    Shinchan Shukla
    This document is an economics worksheet for 12th grade students on the topic of fiscal policy. It defines fiscal policy as using taxation, public expenditure, and public borrowing to achieve economic objectives like full employment and economic stability. The three instruments of fiscal policy are outlined as public revenue (taxes), public expenditure, and public borrowing. Students are asked to answer questions in brief and in detail about objectives and instruments of fiscal policy, and the role of fiscal policy in developed and developing economies.

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    Class 12th CD Economics Worksheet 2 PDF

    Uploaded by

    Shinchan Shukla
    137 views2 pages
    This document is an economics worksheet for 12th grade students on the topic of fiscal policy. It defines fiscal policy as using taxation, public expenditure, and public borrowing to achieve economic objectives like full employment and economic stability. The three instruments of fiscal policy are outlined as public revenue (taxes), public expenditure, and public borrowing. Students are asked to answer questions in brief and in detail about objectives and instruments of fiscal policy, and the role of fiscal policy in developed and developing economies.

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    This document is an economics worksheet for 12th grade students on the topic of fiscal policy. It defines fiscal policy as using taxation, public expenditure, and public borrowing to achieve economic objectives like full employment and economic stability. The three instruments of fiscal policy are outlined as public revenue (taxes), public expenditure, and public borrowing. Students are asked to answer questions in brief and in detail about objectives and instruments of fiscal policy, and the role of fiscal policy in developed and developing economies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    137 views2 pages

    Class 12th CD Economics Worksheet 2 PDF

    Uploaded by

    Shinchan Shukla
    This document is an economics worksheet for 12th grade students on the topic of fiscal policy. It defines fiscal policy as using taxation, public expenditure, and public borrowing to achieve economic objectives like full employment and economic stability. The three instruments of fiscal policy are outlined as public revenue (taxes), public expenditure, and public borrowing. Students are asked to answer questions in brief and in detail about objectives and instruments of fiscal policy, and the role of fiscal policy in developed and developing economies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Girls' High School and College

    2020-2021

    12th C&D

    ECONOMICS

    Worksheet 2

    Chapter : Fiscal Policy

    Introduction :Fiscal policy is defined as the policy under which the government uses the instruments of
    taxation, public expenditure and public borrowing to achieve various objectives of economic policy.
    Fiscal policy concerns itself with the aggregate effects of government expenditure and taxation on
    income, production and employment. In other words it refers to the instructions by which a
    government tries to regulate or modify the economic affairs of an economy. Fiscal policy is a package
    of economic measures of the government regarding its public expenditure, public revenue and public
    debt or borrowing.

    The objective of fiscal policy is to maintain the condition of full employment, economic stability and to
    stabilize the rate of growth. For an underdeveloped economy, the main purpose of fiscal policy is to
    accelerate the rate of capital formation and investment.

    Instruments of Fiscal Policy

    The three instruments of fiscal policy are:

    (a) public revenue

    (b) public expenditure

    (c) public borrowing

    Public revenue : it refers to the income or earnings of the government. The various sources of public
    revenue are : taxes( direct and indirect), revenue from government enterprises and deficit financing.

    Public expenditure : it refers to the various expenses of the government.

    Public borrowing: If expenditure exceeds income, government has to borrow money by imposing
    new taxes or by selling securities.

    Reference book - ISC Economics :D. K. Sethi & Andrews

    Websites :

    1. https://www.financialexpress.com

    2. https://m.economictimes.com

    Note: Parents please ensure that your ward refers to the websites for two days to read the topic.
    Answer in brief :

    1. State two objectives of fiscal policy.

    2.Explain 'impact' and 'incidence' of taxation.

    3. Mention two differences between income tax and sales tax.

    4.How can public expenditure be used to promote economic growth?

    5.Explain any three ways of debt redemption.

    6. Define deficit financing.

    7. Differentiate between progressive and degressive tax.

    8.What is a sinking fund?

    9.Explain 'repudiation of debt'.

    10.What is a proportional tax?

    Answer in detail :

    11.How can fiscal policy be used to:

    (a) maintain economic stability,

    (b) eliminate price fluctuations,

    (c) reduce inequalities of income.

    12.Discuss various instruments of fiscal policy.

    13. Discuss the role of fiscal policy in an underdeveloped economy.

    14. State the role of deficit financing in the development of an economy.

    END

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