Objectives of Public Finance - SS2 Economics Past Questions and Answers - page 1
What are the objectives of public finance?
Allocative efficiency, economic growth, income distribution, price stability, and fiscal stability.
Business growth, income generation, price regulation, and financial stability.
Personal income, financial growth, business regulation, and price control.
How can public finance promote economic growth?
By investing in infrastructure projects.
By providing tax incentives for businesses.
By creating employment opportunities.
All of the above.
What is the objective of income distribution in public finance?
To promote a more equitable distribution of income.
To promote the growth of businesses.
To promote personal income.
What is price stability in public finance?
The ability of the government to regulate prices.
The ability of the government to manage inflation and regulate demand in the economy.
The ability of the government to control taxes and spending.
What is fiscal stability in public finance?
The ability of the government to maintain a balanced budget.
The ability of the government to invest in public goods.
The ability of the government to regulate prices.
Name two objectives of public finance.
Two objectives of public finance are:
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Income Distribution: Public finance can be used to promote a more equitable distribution of income by providing social welfare programs and targeted tax policies that benefit lower-income households.
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Price Stability: Governments can use fiscal policy to manage inflation and price stability, by adjusting taxes and spending to regulate demand in the economy.
How can public finance promote income distribution?
By providing social welfare programs and targeted tax policies that benefit lower-income households.