Q.

The principle of maximum social advantage is the basic principle of -

A. Micro Economics
B. Macro Economics
C. Fiscal Economics
D. Environmental Economics
Answer» C. Fiscal Economics
Explanation: The 'Principle of Maximum Social Advantage', introduced by British economist Hugh Dalton, is the fundamental principle of Public Finance which implies that all the financial operations of the state should aim at maximization of net social benefit. It takes into consideration both the aspects of public finance that is the government revenue or taxation as well as government expenditure. Since it studies problems related to government taxation and spending, it comes under the domain of fiscal economics.
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