Assertion (A): Provision of public goods is the same as public production.
Reason (R):Provision of public goods means that public goods like law and order, defense, parks, roads, etc. are financed through the budget. These goods may be produced directly by the government or it can encourage the private sector by giving them tax concessions and subsidies.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Reason (R):Provision of public goods means that public goods like law and order, defense, parks, roads, etc. are financed through the budget. These goods may be produced directly by the government or it can encourage the private sector by giving them tax concessions and subsidies.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
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Similar Questions
- 1View SolutionAssertion (A): Personal income tax and corporation tax are indirect taxes.
Reason (R): The liability to pay and burden of an indirect tax lie on different persons/entities.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 2View SolutionAssertion (A): The government budget is an important monetary policy instrument.
Reason (R): Government budget is a financial statement of budgetary receipts and budgetary expenditure of the government during a fiscal year.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 3View SolutionAssertion (A): The government budget is an annual estimated statement of revenue and expenditure during the coming fiscal year.
Reason (R): Through the government budget, it tries to reduce the regional variations.
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b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 4View SolutionAssertion (A): Primary Deficit is the Root Cause of Fiscal Deficit.
Reason (R): High Primary Deficit indicates that interest commitments (on earlier loans) have forced the government to borrow.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 5View SolutionAssertion (A):The revenue budget of the Government represents non-debt creating incomes.
Reason (R): The government budget is majorly comprised of receipts and expenditures on the various accounts.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
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c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 6View SolutionAssertion (A): Salaries paid to the central government employees are a part of revenue expenditure
Reason (R): It generates revenue for the government.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 7View SolutionAssertion (A): Fiscal deficits are always inflationary.
Reason (R): Fiscal deficit equals borrowings of the government. Such borrowings are generally financed by issuing new currency which may lead to inflation.
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c) Assertion (A) is true but Reason (R) is False
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Reason (R): Small savings of people (Post office Savings Accounts, National Savings Certificates, etc) are capital receipts for the government because these receipts create a liability of repayment on government.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
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c) Assertion (A) is true but Reason (R) is False
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Reason (R):Fiscal deficit = Revenue deficit + Capital expenditure – Non debt creating capital receipts.
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c) Assertion (A) is true but Reason (R) is False
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Reason (R): Fiscal deficit = Revenue deficit – capital expenditure + Non debt creating capital receipts..
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.