Q. The principle of maximum social benefit is the basic principle of which of the following?
Answer: Fiscal Economics
Notes: The principle of 'maximum social benefit' is a fundamental principle of public finance which was introduced by British economist Hugh Dalton. It should aim at all financial actions of the state to maximize net social benefit. It takes into account both aspects of public finance which is government revenue or taxation as well as government expenditure. It studies the problems related to government taxation and spending, it comes under the domain of fiscal economics.