Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

In a mixed economy, both, the government and market forces of demand and supply play role. According to you, what need does the government cater to?

Options:

Maximum revenue generation from the public to meet its salary expenses

Maximum resource exploitation to improve the productivity of nation at any cost

Optimum utilisation of resources and maximum welfare

All of the above

Correct Answer:

Optimum utilisation of resources and maximum welfare

Explanation:

In a mixed economy, the government plays a very important role. It aims at maximising the fuller and optimum utilisation of resources to provide welfare to the nation.