Maharashtra State BoardHSC Commerce 12th Board Exam
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State with reason whether you agree or disagree with the following statement: Public finance is more elastic than private finance. - Economics

Answer in Brief

State with reason whether you agree or disagree with the following statement:

Public finance is more elastic than private finance.

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Solution

I agree with the above statement.

Reason:

  1. Public finance aims to offer the maximum social advantage to society while private finance aims to fulfill private interests.
  2. There is not much scope for changes in private finance.
  3. On the other hand, the government determines the volume and different ways of its expenditure based on the need for an hour.
  4. The government can also print notes through the Reserve Bank of India.
  5. Hence, public finance is more elastic than private finance, i.e., the extent of public expenditure can be varied as per the needs.
Concept: Public Finance in India
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 8 Public Finance in India
Exercise | Q 3. (5) | Page 80
SCERT Maharashtra Question Bank 12th Standard HSC Economics Maharashtra State Board 2021
Chapter 8 Public Finance in India
State with reasons whether you agree or disagree with the following statements | Q 2
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