Q14 of 36 Page 1

Define the term ‘tax’.

Tax is a mandatory payment which is imposed by the government on the income of the people and the revenue of the companies, to meet its expenditures. For example, income tax and profit tax.


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12

Elaborate on three main features of monopoly form of market.

OR


Distinguish between perfect competition and monopolistic competition on the basis of the following :


(a) Number of sellers


(b) Nature of product


(c) Selling cost


 13

Give any two examples of the flow concept.

 15

Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ________. (Choose the correct alternative)

 16

What is meant by primary deficit?

OR


What is meant by fiscal deficit?