The idea of ‘non-interference’ as proposed by Adam Smith is essentially the philosophy of

Fiscal consolidation can be achieved by

1. Reducing inefficient subsidies

2. Borrowing from domestic market rather than relying on foreign grants

3. Improve tax base

4. Enhancing the resource base of state governments to reduce their financial dependency on the Centre

Select the correct answer using the codes below.

The term ‘State-market mix’ can be applied to which of the following hypothetical economic situations?

1) The government sub-contracting the construction of a national highway to a private developer

2) An economy where all goods and services are produced by state-owned firms but bought by private parties

3) Opening bids for the management of a state-owned railway station to private companies

Select the correct answer using the codes below.

Which of the following characterize Fiscal decentralization?

1. Shifting general revenues from taxes collected by the central government to local governments

2. Spending and tax decisions by the government in the economy reflect local preferences.

Which of the above is/are correct?

A Communist economy advocates

1. State ownership of all properties including labour in the economy

2. Absolute power to state in running and managing the economy

Which of the above is/are correct?