Transfer Payments as a Tool

Q.

Discuss the fiscal reforms introduced under the New Economic Policy of 1991?

Q.

Tax rates on higher income group have been increased. Which economic value does it reflect? Explain.

Q.

Mention the differences between Personal Income and Personal Disposable Income.

Q.

Which of the following is not an example of a transfer payment?

1. Welfare payments to firms or individuals

2. Social Security payments

3. Unemployment compensation

4. A corporate tax cut

Q.

Transfer payments are ______ income to get personal disposable income.

1. Subtracted from

2. Excluded from

3. Added to

4. Not a part of

Q.

If the government is trying to promote stability and economic growth through tax cuts, what type of fiscal policy being used?

1. Expansionary Fiscal Policy

2. Restrictive Fiscal Policy

3. Easy Money Policy

4. Tight Money Policy

Q.

Discuss the impact of fiscal sector reforms.

Q.

A regressive tax causes a greater real burden on the rich. State true or false, and explain.

Q.

What are the two kinds of fiscal policies?

Q.

Match the government policy given to the appropriate type: “cutting income tax rate”

1. Expansionary fiscal policy

2. Contractionary fiscal policy

3. Contractionary monetary policy

4. Expansionary monetary policy

Q. An individual receives an income of Rs 50, 000. He has not paid any tax. What is his disposable income?

1. Rs 49, 000.
2. Rs 48, 000.
3. Rs 40, 000.
4. Rs 50, 000.

Q. Very Short Answer Type Questions
Define current transfers.

Q. Precautions regarding income method ( macroeconomics ) chapter 3

Q. Which of the following Acts help(s) Union Govt to control its fiscal deficit?

1. Finance Act
2. Banking Companies Act
3. Both (a) and (b)
4. Fiscal Responsibility and Budget Management Act

Q. Explain the concept of 'disposable income'.

Q. Give two arguments in favour of the privatization of banks over nationalizing them.

Q.

what is disposable income?

Q. Select the recent developments in the area of fiscal prudence and consolidation using the code given below:
1. Devising the twin concepts of 'monetized deficit' and 'primary deficit'
2. Redefining the idea of 'fiscal deficit'
3. Abolishing the classification of 'development' and 'non-development' categories development' categories of expenditures

1. 2 and 3
2. 1 and 2
3. 1 and 3
4. 1, 2 and 3