Practice Fiscal Policy - 5.6 | Chapter 5: Public Finance | ICSE Class 12 Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define fiscal policy.

💡 Hint: Think about how government decisions on money relate to the economy.

Question 2

Easy

What are two main tools of fiscal policy?

💡 Hint: Remember the acronym TACK!

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the primary purpose of fiscal policy?

  • To influence the stock market
  • To manage public debt
  • To influence economic activity

💡 Hint: Think about how the government affects economic conditions.

Question 2

True or False: Fiscal policy can only increase government spending.

  • True
  • False

💡 Hint: Consider the flexibility of government actions regarding economic needs.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Design a fiscal policy strategy for a hypothetical country facing high inflation. Discuss the tools you would use and expected outcomes.

💡 Hint: Think about the relationships between demand, inflation, and government policies.

Question 2

Critically analyze how income redistribution through fiscal policies might affect economic behavior of high-income earners.

💡 Hint: Consider the implications on motivation and the economy.

Challenge and get performance evaluation