Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Recently, government introduced a scheme named "Ujjawala Yojna", which focused on providing free LPG connection to the women in rural areas. Which objective of the government budget is being fulfilled?

Options:

Allocation function

Redistribution function

Stabilisation function

None of the above

Correct Answer:

Redistribution function

Explanation:

The correct answer is Option 2: Redistribution function

With providing free LPG connection to women residing in rural areas, the income and wealth disparity would decrease. This would serve the purpose of redistribution function that aims at bringing out a distribution which is considered "Fair" by the society.