Providing public goods such as defence and street lighting through the budget serves the objective of

controlling the money supplyCorrect answerYour answerfixing the exchange rateCorrect answerYour answerallocation of resourcesCorrect answerYour answercollecting non-tax revenueCorrect answerYour answer

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CorrectNot quiteAnswer C

Correct answer: C

Public goods are non-excludable, so private firms cannot charge for them easily; the government provides them.

Concept: Allocation function
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe budget and its objectives

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

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

Practise this chapter All 57 questions in Government Budget: Receipts & Expenditure Revise the notes for Government Budget: Receipts & Expenditure

Providing public goods such as defence and street lighting through the budget serves the objective of

Explanation