Which of the following is not true about Public goods? Option 1: Benefit are available to all Option 2: May be produced by private sector Option 3: Benefit not exclude anyone from enjoying the benefits Option 4: Available free to users

Answer: Available free to users. Solution: Detailed Explanation: Public goods are defined by two main economic characteristics: non-rivalry (one person's consumption doesn't reduce availability for others) and non-excludability (you cannot prevent people from using it). Let's break down why "Available free to users" is the statement that is not true: * Available free to users (Not True): Public goods are not inherently free. While they may not have a direct price tag or a fee at the point of use (like walking on a public street), they are heavily funded through public taxation. Society as a whole pays for their creation and maintenance. * Benefits are available to all & Cannot exclude anyone (True): These directly describe non-excludability. For example, national defense or street lighting protects everyone in the area equally, regardless of whether a specific individual paid taxes or not. * May be produced by private sector (True): While public goods are typically financed by the government, the actual production can be outsourced to the private sector. For instance, a private construction company is often contracted to build a public highway or a lighthouse.

Macro

Government Budget

Medium

Which of the following is not true about Public goods?

Benefit are available to all

May be produced by private sector

Benefit not exclude anyone from enjoying the benefits

Available free to users

✅ Correct Option: 4

Detailed Explanation:

Public goods are defined by two main economic characteristics: non-rivalry (one person's consumption doesn't reduce availability for others) and non-excludability (you cannot prevent people from using it).

Let's break down why "Available free to users" is the statement that is not true:

Available free to users (Not True): Public goods are not inherently free. While they may not have a direct price tag or a fee at the point of use (like walking on a public street), they are heavily funded through public taxation. Society as a whole pays for their creation and maintenance.
Benefits are available to all & Cannot exclude anyone (True): These directly describe non-excludability. For example, national defense or street lighting protects everyone in the area equally, regardless of whether a specific individual paid taxes or not.
May be produced by private sector (True): While public goods are typically financed by the government, the actual production can be outsourced to the private sector. For instance, a private construction company is often contracted to build a public highway or a lighthouse.

2025: 2 June Shift 1

Which of the following are the functions of Government Budget?

(A) Restriction.

(B) Allocation.

(D) Stabilisation.

Choose the correct answer from the options given below:

2026: 19 May Shift 2

When a government spends more than it collections by way of revenue, it incurs a budget deficit. There are various measures that capture government deficit and they have their own implications for the economy. Figure out the statements which describe the nature of fiscal deficit in the economy.

A. Large portion of revenue deficit in fiscal deficit indicates larger investment in the economy.

B. It indicates the total borrowing requirements of the government from all sources.

C. It is calculated to obtain an estimate of borrowing on account of current expenditures exceeding revenues.

D. It is the difference between the government's total expenditure and its total receipts excluding borrowing.

Choose the correct answer from the options given below:

2025: 30 May Shift 2

Which of the following is the best example of Public provision and Public Production respectively?

2023: 11 June Shift 3

__________ is a revenue receipt of the Government.

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Primary deficit	(I) Net borrowing at home + Borrowing from RBI + Borrowing from abroad
(B) Fiscal deficit	(II) Fiscal deficit – Net interest liabilities
(C) Revenue deficit	(III) Revenue expenditure – Revenue receipts
(D) Revenue Expenditure	(IV) Plan and non-plan expenditure

Choose the correct answer from the options given below:

2025: 2 June Shift 1

Identify which of the following statements are correct?

(A) Fiscal deficit is the difference between total revenue and total expenditure excluding borrowing of the government.

(B) Fiscal deficit is the difference between total planned expenditure and total planned receipts of the government.

(D) Fiscal deficit is the sum of primary deficit and interest payment.

Choose the correct answer from the options given below:

Which of the following is not true about Public goods?

Solution

Detailed Explanation:

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