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प्रश्न
Explain why public goods must be provided by the government.
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उत्तर
A good that is non-rival and non-excludable is referred to as public good. Non-rival means that consumption by one individual does not affect the consumption of another individual. Whereas, non-excludable implies that no individual can be excluded from using the good. For example, parks, roads, national defence, etc.
These goods must be provided by the government because of the following reasons:-
1. The benefits of public goods can be easily enjoyed by anyone without affecting the consumption of other individuals. There arises market failure.
2. No individual can be excluded from using public goods as it is available to all. The link between the producer and the consumer becomes non-functional, necessitating government interference through public provisions.
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संबंधित प्रश्न
In India budget is presented in the Parliament by the ............................................
(Prime Minister / Finance Minister / Chief Minister / Defence Minister)
Government raises its expenditure on producing public goods. Which economic value does it reflect? Explain.
Explain any one objective of Government Budget.
Explain the role of government budget in bringing stability in the economy.
Explain how government budget can be used to influence the distribution of income?
Answer the following question.
Explain how the government can use the budgetary policy in reducing inequalities in incomes.
Explain the role of the government budget infighting inflationary and deflationary tendencies.
Explain the budget expenditure of the government.
Explain the ‘redistribution of income’ objective of Government budget.
State whether the following statements are TRUE or FALSE with reason.
Government budget is a family budget.
Choose the correct answer :
The Government budget is for _________.
Two friends Komal and Ritika were discussing the Government budget.
"Through its budgetary policy the government of a country directs the allocation of resources in a manner such that there is a balance between the goals of profit maximisation and social welfare".
The above-mentioned statement was given by Komal, identify the objective of Government budget was she talking about?
The focus of government budget is to:
Identify the objective of the budget.
The primary deficit in a government budget is:
In order to tackle the problem of rising general price in an economy, government may come up with a surplus budget to achieve the budget objective of ______.
- reallocation of resources
- price stability
- redistribution of income
State any two features of public goods.
