The term 'Fiscal Consolidation' refers to policies aimed at: MCQ with Answer and Explanation

The term 'Fiscal Consolidation' refers to policies aimed at:
A. Reducing the fiscal deficit and improving the sustainability of public finances
B. Only printing money to finance deficits
C. Only increasing tax rates without expenditure reform
D. Increasing the fiscal deficit continuously
Answer: Option A
Solution (By JKSSB Mock Tests)
Fiscal consolidation involves measures to reduce the fiscal deficit and put government debt on a sustainable path through a combination of revenue and expenditure reforms.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Consumer Sovereignty' implies that:
A. Government decides all production
B. Consumers ultimately determine what is produced through their demand
C. Producers decide what to produce
D. Only exporters decide production

Correct Answer: Option B


Explanation:
Consumer sovereignty means that in a market economy, consumers, through their spending decisions, ultimately determine what goods and services are produced.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' is a:
A. indirect tax
B. direct tax
C. wealth tax
D. capital gains tax

Correct Answer: Option A


Explanation:
GST is an indirect tax on goods and services.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the monopolistic competition market structure?
A. Perfect knowledge and no advertising
B. Homogeneous product
C. Single seller
D. Product differentiation and selling costs

Correct Answer: Option D


Explanation:
Monopolistic competition is characterised by product differentiation, a large number of firms, free entry and exit, and significant selling costs.

This question belongs to: Economy GK Economy Set 1