When the government imposes taxes on income, then which function do they actually exercise? Option 1: Redistribution function. Option 2: Allocation function. Option 3: Stability function. Option 4: Consumption function.

The answer is 'Redistribution function.'. View full solution:

CUET Economics - When the government imposes taxes on income, then which function do they actually exercise? | PYQs + Solutions

CUET Economics 2026 13th May Shift 1

Macro

Easy

Redistribution function.

Allocation function.

Stability function.

Consumption function.

✅ Correct Option: 1