--%>
Assignment Help - homework help

Reallocation of resources through budget

Reallocation of resources: In case, the market economy fails or does not attain the desired social objectives, the government has to interfere via budget and reallocate resources accordingly.

Through its budgetary policy, the government of a country directs the allotment of resources in such a manner that there is a balance among the goals of profit maximization and social welfare. The production of goods that are injurious to health is discouraged via heavy taxation. On other hand, production of socially helpful goods is encouraged via subsidies.

   Related Questions in Macroeconomics

  • Q : Subjective worth of Consumer Surplus

    The consumer gains from being capable to purchase at a single price rather than paying all that the particular quantity of the good is subjectively worth are: (i) Adverse selections. (ii) Market exploitation. (iii) Consumer surpluses. (iv) Moral hazards.

  • Q : Microeconomic analysis emphasizing to

    Family member to macroeconomics, the microeconomic analysis: (w) was emphasized through economists prior to the Great Depression. (x) is related with the effects of extensive government policies. (y) focuses upon economic development

    		•
  • Q : Expenditure of money on party effects

    When you pay a straight A student in advance to write up your term paper and that person expends the money on a party and then, hung-over, can’t do a good job and hence you wind up with an F for submitting sloppily written gibberish, you encompass just suffered

    		•
  • Q : Shortage of the good Describe when

    Describe when there will be a shortage of the good?

    		•
  • Q : Full-employment and Under-employment

    Distinguish between full-employment equilibrium and Under-employment equilibrium. Whenever equality among AD and AS is at full employment level it is termed as full employment equilibrium. Although whenever equali

    		•
  • Q : McConnell Brue Flynn 19e What

    What relationship does the MPC bear to the size of the multiplier

    		•
  • Q : Supply factors in economic growth

    Briefly explain the four supply factors in economic growth?

    		•
  • Q : Where is macroeconomics mainly focus I

    I need a good answer on the topic of Economic problems. Please give me your suggestion for problem which is specified below: Macroeconomics focuses mainly on: (i) inflation, unemployment, economic growth, and other aggregate econom

    		•
  • Q : Market shift when exporting When the

    When the U.S. furniture market is primarily in equilibrium at point e on S0D0 and then Chinese manufacturers start exporting more furniture to the United States, then this market would shift towards a new equilibrium at: (1) point a. (2) point b. (3) point c. (4) poin

    		•
  • Q : Public debt How does an internally held

    How does an internally held public debt differ from an externally held public debt?

    		•