Constitution are_________________?
Correct answer: B. instruments for limiting governmental power
- A. signed documents
- B. instruments for limiting governmental power
- C. possible only in industrial societies
- D. characteristic of democracies only
Explanation
A constitution establishes and limits governmental authority by defining powers, procedures, and citizens' rights. Constitutions are not confined to democracies or industrial societies, and they need not be merely signed documents.
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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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