--%>

Reallocation of resources-Government budget

Describe the Reallocation of resources objective of the government budget.

E

Expert

Verified

Through Budgetary policy the government directs the assigning of resources in a way such that there is a balance among goal or of gain maximisation and social welfare. The Government can give subsidy and reduction in tax rate to motivate investment into regions where private sector initiative is not coming. Production of goods that are injurious to social life is discouraged via heavy taxation.

   Related Questions in Microeconomics

  • Q : Assumption of economic model-financial

    Most of the economic models suppose that the financial goal of a corporation is the maximization of the value of: (1) Firm’s net revenue. (2) Accounting gains to the firm. (3) Firm to its shareholders. (4) Progress of the sales revenues. (5) Monetary advantages

  • Q : Least likely monopsony power Which of

    Which of the given below employers is LEAST likely to encompass monopsony power? (1) The secretarial service firm in the Los Angeles. (2) The police force in Eau Claire, Wisconsin. (3) U.S. Department of Defense. (4) Wal-Mart in the Snowflake, Arizona. (5) Community h

  • Q : What is Interest Rate Price Risk

    Interest Rate Price Risk: The risk which occurs for bond owners from fluctuating interest rates is termed as interest rate risk. How much interest rate risk a bond has based on how sensitive its price is to interest rate modifications.

  • Q : Minimizes losses and maximizes profits

    When Firm B in demonstrated graph successfully minimizes losses and maximizes its profits that have: (1) covered overhead while incurring short-run economic losses. (2) potential economic profit of Pbgh per period. (3) total costs equal to 0phq2. (4)

  • Q : Demand curve for Complementary Goods

    The ban on assault weapons enacted in the year 1994 lapsed in the year 2004. Prices for assault weapons fell in year 2004 since the only way to get such guns throughout the ban was via the black market. This modify in the law in year 2004 is most probable to shift the

  • Q : Profit-maximizing monopolistically

    A profit-maximizing monopolistically competitive firm will operate where is: (w) MR > MC. (x) MR = MC. (y) P < MR. (z) P < MC. Can anybody suggest me the proper explanation for given problem regarding

  • Q : Monopsony Power-sole buyer Can someone

    Can someone please help me in finding out the accurate answer from the following question. The firm which is the sole buyer of a specific good or resource is the: (1) Monopsonist. (2) Conglomerate. (3) Price discriminator. (4) Plutocracy. (5) Bilateral monopolist.

  • Q : Area below supply curve of resource The

    The area below a resource’s price line although above its supply curve is: (w) consumer surplus. (x) monopoly profit. (y) excess value. (z) economic rent. Can anybody suggest me the proper explanation for giv

  • Q : Define aggregate demand Define

    Define aggregate demand: Aggregate demand is stated as the money value of total goods and services demanded by an economy throughout a particular period.

  • Q : State Performance of Funds Performance

    Performance of Funds: The performance of funds mainly depends on how much diversification has been taken up by a portfolio manager and also if the company’s fundamentals have been assessed well and no hasty decision has been made on the basis of