Fiscal Policy Is Defined as

question 83

Multiple Choice

Fiscal policy is defined as

• A)the design of a tax system to transfer income from the rich to the poor.
• B)the use of Congressional power to pursue social and political goals.
• C)the discretionary changing of government expenditures and/or taxes to achieve national economic goals.
• D)the use of the taxing power of the government to redistribute wealth in a socially acceptable manner.

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Definitions:

Perfect Competitor

A market situation where numerous buyers and sellers exist, products are identical, and no individual buyer or seller can influence the market price.

Concentration Ratio

An indicator of the percentage of an industry's market controlled by its biggest companies.

Leading Firms

Leading firms are companies at the forefront of their industries, often setting standards and trends for others to follow.

Perfect Competitor

an individual firm operating in a perfect competition market structure, which cannot influence the market price and produces a standard product.