Download App

Government Budget and Economy — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsGovernment Budget and Economy3 Marks
Question
Explain the allocation function of a government budget.
✓

Answer

Govt. uses budgetary policy to allocate resources. This is done by imposing higher rate of taxation on goods whose production is to be discouraged and subsidies provided on goods whose production is to be promoted.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Government Budget and Economy→Government Budget and Economy — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

GNP is the estimated value of the total worth of production and services earned by the normal residents of a country. But to find out NNP, GNP deducts depreciation, why should we deduct depreciation from GNP?
→
Explain the central problem of ‘choice of technique’.
→
If in an economy:
Change in initial Investments $(\triangle\text{I})=\text{₹ 500 crores}$
Marginal Propensity to Save (MPS) = 0.2
Find the values of the following:
  1. Investment multiplier (k)
  2. Change in final income $(\triangle\text{Y})$
→
The value of the nominal GNP of an economy was Rs. 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs. 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?
→
Give two examples of micro economic studies.
→
Identify the following items as visible items or invisible items.
  1. Export of computer software.
  2. Import of LCD screen from Malaysia.
  3. Banking service to NRI.
  4. Export of Tea to Thailand.
  5. Consultancy services of TCS used by a foreign firm.
→
Explain the relationship between revenue deficit and fiscal deficit. Can there be fiscal deficit without a revenue deficit?
→
Define investment multiplier. How is it related to marginal propensity to consume?
→
Transfer payments refer to payments which are made:
  1. Without any exchange of goods and services.
  2. To workers on transfer from one job to another.
  3. As compensation to employees.
  4. None of these.
→
Classify the into consumer, intermediate or capital goods.
Milk used by a manufacturer of sweets.
→