Match List-I with List-II
List-I List-II (A) Public Provision (I) No feasible way to deny anyone to use public goods. (B) Stabalisation Function (II) Goods are produced directly by the government. (C) Non-Excludable (III) Financed through the budget and can be used without any direct payment. (D) Public Production (IV) Whether to expand demand or reduce it.
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) Public Provision | (I) No feasible way to deny anyone to use public goods. |
| (B) Stabalisation Function | (II) Goods are produced directly by the government. |
| (C) Non-Excludable | (III) Financed through the budget and can be used without any direct payment. |
| (D) Public Production | (IV) Whether to expand demand or reduce it. |
Choose the correct answer from the options given below:
Solution
Option 1: (A) - (III), (B) - (IV), (C) - (I), (D) - (II) -> Public Provision refers to goods/services financed through government budget and provided without direct payment (like public parks, street lighting). Stabilisation Function is a key government role in macroeconomic management, deciding whether to expand or contract aggregate demand through fiscal and monetary policies to maintain economic stability. Non-Excludable is a fundamental characteristic of pure public goods where it's technically or economically infeasible to prevent anyone from consuming the good once provided (e.g., national defense, clean air). Public Production means the government directly produces goods/services through state-owned enterprises or departments rather than just financing private production. -> correct
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