Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

What is the reason behind calling a function of budget as "Distribution function"?

Options:

Increase the disposable income of every citizen of the country

Alters the income distribution to make fair distribution 

Focus on equality than on equity

All of the above

Correct Answer:

Alters the income distribution to make fair distribution 

Explanation:

One of the major function of budget is to reduce the income inequalities in the country. Thus, government with the help of its fiscal instruments makes sure that the resources and income are distributed in the utmost fair manner.