Economics MCQs

Fiscal Policy Questions with solutions MCQs

1. From the following options, indentify the reason, best suited why underdeveloped countries make a fiscal policy?

A

Reduces labor taxes, especially at low income levels.

B

Accelerate the rate of capital formation and investment

C

Provide well-designed tax incentives that reduce the cost of capital

D

Increase the potential output as a major advanced and emerging market economies.

Fiscal Policy General Economics
Correct Answer : B
Explanation :

The foremost aim of fiscal policy in underdeveloped countries is to mobilize resources in the private and public sectors. ... Therefore, the governments of such countries through forced savings pushes the rate of investment and capital formation which in turn accelerates the rate of economic development.

Correct Answered :

Wrong Answered :

CONTACT US

  • J & K

  • admin@prepmart.in

    • QUICK LINKS

    LIKE AND SHARE YOUR EXPERIENCE

    Like Us on Facebook Join Us on Telegram
    VISITORS COUNT 1 0 4 4 8 3 8
    PrepMart 2022. All Rights Reserved | Terms & Conditions | Privacy Policy | Refund & Cancellation Policy
    Developed By : Azhar Rashid Teli