Question : When private sector does not find producing certain goods and services attractive, production of such goods and services is taken by the government. This refers to the ______ objective of Government Budget
Option 1: Reducing Inequalities of income and wealth
Option 2: Reducing regional disparity
Option 3: Reallocation of resources
Option 4: Economic stability
Correct Answer: Reallocation of resources
Solution : The correct answer is (c) Reallocation of resources.
When the private sector does not find producing certain goods and services attractive, and the government steps in to produce them, it reflects the objective of reallocation of resources in the Government Budget.
Reallocation of resources in the government budget refers to the allocation of funds and resources to sectors or areas where the private sector may not invest or provide goods and services efficiently. It involves redirecting resources from one sector to another to ensure the provision of essential goods and services that are considered important for the welfare of society.
By taking up the production of goods and services that are not adequately provided by the private sector, the government aims to fill the gaps and ensure the availability of these essential goods and services to the public.
