The concept of 'Fiscal Space' refers to: MCQ with Answer and Explanation

Question

Share Report Error

The concept of 'Fiscal Space' refers to:

A. The room available for a government to increase spending or reduce taxes without endangering debt sustainability

B. Only the primary surplus

C. The physical space occupied by government offices

D. Only the revenue deficit

Answer: Option A

Solution (By JKSSB Mock Tests)

Fiscal space is the budgetary room that allows a government to provide resources for desired purposes without compromising fiscal sustainability or crowding out private investment excessively.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The 'Governing Council' of NITI Aayog includes:

A. Chief Ministers and Lieutenant Governors

B. only central ministers

C. only finance secretaries

D. only RBI Governor

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
The Governing Council includes Chief Ministers and Lieutenant Governors along with the Prime Minister and central ministers.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of cost, Marginal Cost is defined as:

A. Total cost divided by output

B. Change in total cost due to production of one additional unit

C. Fixed cost divided by output

D. Variable cost divided by output

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Marginal Cost (MC) is the addition to total cost when one more unit of output is produced. MC = ΔTC/ΔQ.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'financial trilemma' states that a country cannot simultaneously have:

A. high growth, low inflation and low unemployment

B. free trade, high tariffs and high exports

C. free capital mobility, fixed exchange rates and independent monetary policy

D. low taxes, high spending and low deficit

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The trilemma says a country can achieve only two of three: free capital mobility, fixed exchange rate and independent monetary policy.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs