Question : The main purpose of a government budget is to:
Option 1: Maximize profits for the government
Option 2: Minimize the size of the government
Option 3: Allocate resources efficiently
Option 4: None of the above
Correct Answer: Allocate resources efficiently
Solution : The correct answer is (c) to allocate resources efficiently.
The government budget serves as a financial plan that outlines the government's anticipated revenues and expenditures for a specific period, typically a fiscal year. While the specific goals and priorities of a government budget may vary, its primary purpose is to allocate resources effectively and efficiently to meet the needs of the country and its citizens.
Through the budgeting process, the government determines how funds will be allocated to various sectors and programs such as education, healthcare, infrastructure, defense, social welfare, and more. The goal is to ensure that resources are distributed in a manner that promotes economic growth, social development, and the well-being of the population.
Question : Market failure occurs when:
Option 1: Markets allocate resources efficiently
Option 2: Markets allocate resources inequitably
Option 3: Markets fail to allocate resources efficiently
Option 4: Markets fail to allocate resources inequitably
Question : A government budget that is balanced over the long term is called:
Option 1: A stable budget
Option 2: A dynamic budget
Option 3: A cyclically balanced budget
Question : Which of the following is not important for management?
Option 1: Achieving goals effectively
Option 2: Increasing employee turnover
Option 3: Utilizing resources efficiently
Option 4: Adapting to change
Question : Policies of Surplus budget during inflation is a part of which objective of government budget?
Option 1: Economic growth
Option 2: Economic Stability
Option 3: Reducing Regional Disparities
Option 4: Reallocation of Resources
Question : Debentures are:
Option 1: Issued by government authorities
Option 2: Always secured by assets of the company
Option 3: Long-term debt instruments
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