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SSC CGL 2025 PYQ — Question 33

SSC CGL - 17 Sep 2025 - Shift 1 • General Awareness • Q33

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A key component evaluated by the 2025 Index of Economic Freedom concerning Government Size" is:

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Correct answer: B

Explanation

The correct answer is Option 2 i.e. Government Spending Levels.

In the 2025 Index of Economic Freedom, published by The Heritage Foundation, "Government Size" is a major category that measures the degree of state intervention.

Core Components of Government Size:

  1. Government Spending: Evaluates the level of public expenditures as a percentage of GDP. Excessive spending is seen as a burden that can crowd out private investment.

  2. Tax Burden: Measures the top marginal tax rates on individual and corporate income and the overall tax-to-GDP ratio.

  3. Fiscal Health: Assesses the sustainability of a government’s budget, including deficits and the accumulation of public debt.

Static Info: The Index evaluates 184 countries across 12 quantitative and qualitative factors, grouped into four "pillars": Rule of Law, Government Size, Regulatory Efficiency, and Open Markets.