Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following is a tool in the hands of the government managing to reduce the regional disparities in the country?

Options:

Progressive taxation

Setting up SEZ's

Relocation

Both 1 and 2

Correct Answer:

Setting up SEZ's

Explanation:

Progressive taxation is done through budget with the help of taxation tools. The government introduced progressive taxation to reduce income disparities in the country. Whereas, in order to reduce the regional disparities various special economic zones also called as SEZ's were set up in the economic backward regions.