Match each budget measure with the objective it serves.

Match each budget measure with the… — CUET Economics practice

Question 6

MediumOriginal question

Match each budget measure with the objective it serves.

List I	List II
A. Higher income tax rates on the rich and free meals for poor children	I. Economic stability
B. Tax breaks for firms that set up solar plants	II. Redistribution of income
C. Cutting spending when inflation is high	III. Reducing regional disparities
D. Special funds for backward districts	IV. Reallocation of resources

A-II, B-IV, C-I, D-IIICorrect answerYour answerA-II, B-I, C-III, D-IVCorrect answerYour answerA-I, B-II, C-IV, D-IIICorrect answerYour answerA-III, B-IV, C-I, D-IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Taxing the rich and helping the poor redistributes; tax breaks steer resources to chosen uses.
Spending cuts in inflation stabilise; district funds narrow regional gaps.

Concept: Objectives of the budget
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsThe budget and its objectives

Practise this chapter →

Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

Practise this chapter →

Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

Question 6

Explanation