Fiscal Policy and Public Sector Failure (Grade 12 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What are the three main instruments of fiscal policy?
What are the three main instruments of fiscal policy?
Taxation, govt spending, and borrowing
What is a budget deficit?
What is a budget deficit?
When expenditure is more than income
Why is fiscal policy described as 'demand biased'?
Why is fiscal policy described as 'demand biased'?
It is primarily a demand-side policy
Which is part of functional classification of government expenditure?
Which is part of functional classification of government expenditure?
Social services and protection services
Why does government impose taxes on demerit goods like tobacco and alcohol?
Why does government impose taxes on demerit goods like tobacco and alcohol?
To discourage harmful activities
What does a progressive tax system aim to achieve?
What does a progressive tax system aim to achieve?
More even distribution of income
What does the Laffer Curve demonstrate?
What does the Laffer Curve demonstrate?
An optimal tax rate maximizes revenue
When does public sector failure occur?
When does public sector failure occur?
Govt intervention produces worse outcomes
What is a key reason for public sector failure related to employee motivation?
What is a key reason for public sector failure related to employee motivation?
No rewards for successful service
What is an effect of public sector failure?
What is an effect of public sector failure?
Economic instability